Net Profit Margin Calculator
Reveal how much profit your company keeps from every dollar earned. Enter net revenue and all expenses for a specific month, quarter, or fiscal year to calculate net profit margin alongside the underlying net income. Use the output to benchmark performance, evaluate pricing power, or prepare investor updates.
Financial models should be reviewed by a qualified accountant before making investment or lending decisions.
Examples
- $125,000 revenue with $93,500 expenses ⇒ Margin 25.20% | Net profit $31,500.
- $2.4M revenue with $2.2M expenses ⇒ Margin 8.33% | Net profit $200,000 (thin operating leverage).
- $68,000 revenue with $72,500 expenses ⇒ Margin −6.62% | Net loss $−4,500.
- $410,000 revenue with $295,000 expenses ⇒ Margin 28.05% | Net profit $115,000 for the quarter.
FAQ
Should depreciation and amortisation be included?
Yes. Net profit margin uses bottom-line net income, which includes non-cash charges such as depreciation and amortisation.
What if revenue is zero?
Margin cannot be computed without revenue. Enter at least a minimal sales figure or analyse costs separately.
How do I compare to industry benchmarks?
Match reporting periods and accounting standards, then compare your margin to published benchmarks from trade associations, financial databases, or public company filings.
Does the result change with currency?
The margin percentage is currency-agnostic, but ensure revenue and expense figures use the same currency so the net profit output remains accurate.
Additional Information
- Formula: Net profit margin = (Net profit ÷ Net revenue) × 100, where net profit = revenue − total expenses.
- Track the metric by period (monthly, quarterly, yearly) to spot seasonality, pricing shifts, or cost creep.
- Cross-check the margin with gross, contribution, and operating margins to pinpoint where profitability gains or leaks occur.
- Use the net profit output to reconcile against your income statement before presenting to stakeholders.