CalculateMeasure

Business

Net Profit Margin Calculator

Calculate net profit margin as net income divided by revenue, expressed as a percentage.

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Calculator guide

How to use the Net Profit Margin Calculator

Net profit margin shows how much net income remains for each unit of revenue after all expenses reflected in net income. Revenue and net income should cover the same accounting period and use the same currency basis.

Formula

Net Profit Margin % = (Net Income ÷ Revenue) × 100

Worked example

If revenue is 250,000 and net income is 30,000, net profit margin is (30,000 ÷ 250,000) × 100 = 12%.

What to keep in mind

  • Revenue must be greater than zero.
  • Net income may be negative, producing a negative margin.
  • Use consistent accounting periods and definitions when comparing results.

Methodology

This calculator uses a deterministic formula and performs the arithmetic locally in your browser. It does not send the values you enter to a server in order to calculate the result.

Review standard: Level B · Industry formula. How calculator reviews work.

Frequently asked questions

What does this calculator calculate?

Calculate net profit margin as net income divided by revenue, expressed as a percentage.

How is the result calculated?

Net Profit Margin % = (Net Income ÷ Revenue) × 100.

Can I use the result for an important decision?

Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.

Does CalculateMeasure store the values I enter?

The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.