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Net Profit Margin Calculator

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

Your workbenchInputs are not stored

Result

Enter your values and run the tool to see your result.

What this tool does

Shows net profit as a percentage of revenue, after all costs and taxes. Enter net profit in the first field and revenue in the second.

How to use it

  1. Get an income statement for one period.
  2. Enter net profit in the first field.
  3. Enter revenue in the second field.
  4. Run it to get net profit margin as a percentage.

Worked example

Net profit 100 on revenue 200 is a 50% margin. Net profit 8 on revenue 200 is 4%.

Calculation method

Ratioa/b*100

Frequently asked questions

How does this differ from operating margin?
Operating margin measures what the core business keeps; net margin reflects interest, tax, and one-off items as well. Net is usually lower.
What if net profit is negative?
You get a negative percentage. Read it as the size of the loss relative to revenue.

What this tool does not cover

Quarters containing one-off items or accounting policy changes are poor for trend comparison. Comparing across different industries also needs care.

References