Net Profit Margin Calculator
Enter total revenue and total expenses to get net profit and net profit margin.
How to use this calculator
- 1Enter total revenue for the period.
- 2Enter total expenses — everything, including overheads and tax.
- 3Read net profit and net profit margin.
How the Net Profit Margin Calculator works
Net profit margin is the truest measure of profitability because it deducts every expense — not just the cost of goods, but overheads, tax and interest too. It tells you how many cents of each dollar of sales you actually keep once everything is paid.
A margin around 10% is often considered average, with 20%+ strong, though it varies widely by industry. Tracking it over time surfaces problems a headline revenue figure hides: rising sales with a falling net margin usually means costs are growing faster than income.
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Create an invoice freeFrequently asked questions
What is net profit margin?
Net profit as a percentage of revenue, after all expenses. It shows how many cents of every dollar of sales you actually keep.
What is a healthy net margin?
It varies widely, but 10% is often considered average and 20%+ strong. Service and software businesses tend to run higher than product businesses.
Net vs gross margin?
Gross margin deducts only the cost of goods sold; net margin deducts every expense. Net is the truer measure of profitability.
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