Contribution Margin Calculator
Margin toward fixed costs.
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Business
Net Profit Margin Calculator
Find your net profit margin from revenue and total expenses.
Net profit margin
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Of revenue.
| Net income | — |
|---|---|
| Revenue | — |
| Expenses | — |
| — |
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How the Net Profit Margin Calculator Works
Net profit margin is the share of revenue left after every expense — costs, operating expenses, interest and taxes. Subtract total expenses from revenue to get net income, then divide by revenue. A business with $500,000 revenue and $425,000 in expenses keeps $75,000, a 15% net margin.
It’s the bottom-line profitability number and lets you compare businesses of any size. Margins vary a lot by industry — grocery runs low single digits, software often 20% or more. Rising margin means you’re keeping more of each sales dollar.
net profit margin = (revenue − total expenses) ÷ revenue
Frequently Asked Questions
How do you calculate net profit margin?
Subtract all expenses from revenue to get net income, then divide by revenue and multiply by 100.
What is a good net profit margin?
It depends on the industry — 10% is often called healthy, but software can exceed 20% while grocery runs low single digits.
What’s the difference from gross margin?
Gross margin subtracts only the cost of goods. Net margin subtracts everything, including operating costs, interest and taxes.
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