Free online calculator
Net Profit Margin Calculator
Estimate the percentage of revenue remaining after total expenses. Includes a worked example, formula and practical FAQs.
Formula: Net profit margin (%) = (revenue − total expenses) ÷ revenue × 100
How to use the Net Profit Margin Calculator
Estimate the percentage of revenue remaining after total expenses. Enter revenue and all expenses for the same reporting period.
Formula
Net profit = revenue − expenses; net margin (%) = net profit ÷ revenue × 100.
Worked example
Revenue of $10,000 and total expenses of $8,500 give $1,500 net profit and a 15% net margin.
Interpretation and limitations
Revenue must be positive. Include product costs, operating expenses, interest and taxes when your intended measure is after-tax net profit. Avoid counting an expense twice.
Net Profit Margin questions
How does this differ from gross margin?
Gross margin subtracts cost of goods sold only. Net margin includes the full expense scope you enter.
Can net margin be negative?
Yes. Expenses of $11,000 against $10,000 revenue produce a $1,000 loss and a −10% net margin.
Continue your calculation
For the next step, use the Gross Profit Calculator or the Operating Margin Calculator. Review each tool’s input definitions before carrying a result into another calculation.
Frequently asked questions
Is this calculator free?
Yes. It runs in your browser and does not require an account.
How should I use the result?
Use the result as a planning estimate and verify business-critical decisions against your source records.