Net Profit Margin Calculator

Net Profit Margin Calculator calculator can be used to calculate the percentage of revenue that remains as profit after all expenses are deducted.

Input Parameters

Calculation Results

Calculation Formula

Net Profit Margin = (Net Profit / Revenue) × 100%

Where:
- Revenue: Total income generated from business activities
- Net Profit: Revenue minus all expenses, taxes, and costs

Net Profit Margin Calculator Usage Guide

Learn how to use the Net Profit Margin Calculator and its working principles

How to Use the Calculator

  1. Enter your total Revenue (the total income generated from business activities)
  2. Enter your Net Profit (Revenue minus all expenses, taxes, and costs)
  3. Click the Calculate button to calculate the Net Profit Margin
  4. The result will be displayed as a percentage

Understanding Net Profit Margin

Net Profit Margin is a key financial metric that shows the percentage of revenue that remains as profit after all expenses are deducted. It helps businesses understand their profitability and efficiency in converting revenue into actual profit.

Example

If your company has a revenue of $500,000 and a net profit of $75,000, your Net Profit Margin would be calculated as:

($75,000 / $500,000) × 100% = 15%

This means that for every dollar of revenue, your company keeps 15 cents as profit.

Interpreting the Results

A higher Net Profit Margin indicates better financial health and efficiency. Industry benchmarks vary by sector, so it's best to compare your margin to others in your specific industry.