True Profitability: Free Net Profit Margin Calculator
Net Profit Margin Calculator
Calculate your company's net profit and net profit margin to understand the overall profitability after all expenses.
Input Your Data
Total revenue from sales after deducting returns, allowances, and discounts.
The profit remaining after all expenses, including taxes and interest, have been deducted from revenue.
Your Results
Net Profit Margin:
0.00%
The percentage of revenue left after all expenses, including taxes and interest, have been deducted.
How It Works
- Enter your company's Net Sales for the period.
- Input your Net Profit for the same period.
- Click "Calculate" to see your Net Profit Margin.
- The "Clear" button will reset all fields.
Formula for Net Profit Margin: (Net Profit / Net Sales) × 100
Interpretation: A higher net profit margin indicates greater overall profitability and efficiency in managing all costs.
How the net profit margin calculator works
Net profit margin shows the percentage of revenue you keep as profit after all expenses, including interest and tax. Enter your revenue and your net profit.
Worked example
Revenue is 100,000 and net profit is 10,000. Net profit margin = 10,000 ÷ 100,000 × 100 = 10%. The business keeps 10 of every 100 of sales as profit.
Frequently asked questions
Can net profit margin be negative?
Yes. If expenses exceed revenue, there is a loss and the margin is negative.
What is a good net profit margin?
It varies widely by industry. Compare with similar businesses and with the same business over time.
Related: Net profit margin · Net profit · Income statement · All calculators
