Net Profit Margin Calculator
Calculate your business net profit margin
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Profit Margin Formula
Gross Profit = Revenue - COGS
Operating Profit = Gross Profit - Operating Expenses
Net Profit = Operating Profit - Taxes
Net Profit Margin = (Net Profit / Revenue) × 100
Calculate your business net profit margin to assess overall financial health.
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This is a simplified calculation. Actual business taxes may be more complex.
Understanding Profit Margins
Key financial metrics for business analysis:
Gross Margin
Profit after COGS. Shows production efficiency.
Operating Margin
Profit from core operations.
Net Margin
Overall profitability after all expenses.
ROE
Return on equity for shareholders.
Example: $500k revenue, $300k COGS, $134k expenses, 25% tax. Net profit = $49.5k, margin = 9.9%.
Applications
Business Analysis
Financial Planning
Investing
Startups
Accounting
Frequently Asked Questions
What is net profit margin?▼
Net profit margin = (Net Profit / Revenue) × 100. Measures overall profitability.
What is a good net profit margin?▼
Varies by industry. Typical ranges: 5-15% for most businesses.
How to improve net profit margin?▼
Increase revenue, reduce costs, optimize pricing, and improve efficiency.
What is the difference between gross and net margin?▼
Gross margin = (Revenue - COGS)/Revenue. Net margin accounts for all expenses.
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