Business Profit Calculator Nigeria — Gross & Net Profit Margins
Calculate your business gross profit, net profit, and profit margins. Understand what you keep from every naira of revenue.
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Operating Expenses (Monthly)
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Revenue presets:
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Net Profit
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Gross Profit
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Gross Margin
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Net Margin
Profit & Loss Summary
Frequently Asked Questions
What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct cost of goods sold (COGS) — what you spend to produce or buy the product. Net profit is what remains after also deducting operating expenses like rent, salaries, utilities, and marketing. Net profit is what the business actually keeps.
What is a good profit margin for a Nigerian business?
It depends on the industry. Retail businesses typically aim for 5–20% net margin. Food and beverage businesses often run 10–25%. Service businesses (consulting, tech) can achieve 20–50%+. Trading businesses operate on thin margins of 2–10%. Compare yourself to similar businesses in your sector.
What should I include in Cost of Goods Sold (COGS)?
COGS includes: raw materials, direct labour to produce the product, manufacturing overhead, packaging, freight/transport to receive goods, and import duties. It does NOT include rent, salaries of admin staff, marketing, or utilities — those go in operating expenses.
How can I improve my net profit margin?
Increase revenue (raise prices or sell more volume), reduce COGS (better supplier negotiation, process efficiency), cut operating costs (reduce overhead), or improve product mix (sell more of higher-margin products). Track your margins monthly to catch deterioration early.