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How to Calculate Profit Margin for a Coffee Shop

Pricing your menu correctly can mean the difference between a thriving café and barely breaking even.

What is profit margin?

Gross margin is revenue minus cost of goods. Net margin also subtracts operating expenses like rent and labor.

Net Margin = (Price − Cost − Expenses) / Price × 100

Example: a $5 latte

• Cost of goods: $1.20
• Allocated expenses: $0.80
• Net margin: 60%

Use the free Profit Margin Calculator or get the spreadsheet template.