Net Profit Margin Calculator

How do you Calculate Net profit Margin?

Net profit margin is a rather simple calculation. Only two variables are needed for it:

• Net profit


• Total revenue

• NPM = Net profit margin


• NP = Net profit


• TR = Total revenue

Understanding Your Results

Your result will be a single percentage. This number represents the net profit margin, indicating how much you made in profit out of the entire amount of revenue that was generated. For example, if you have a net profit margin of 50% it means that your net profit amounted to 50% after all fees, taxes, and other charges were taken from the total revenue that was generated.

How to Use the Net Profit Margin Tool

Using our net profit margin tool is very easy and simple. The steps include:

1. Enter the net profit.


2. Enter the total revenue.


3. Ensure your entries are correct and reflect the same period of time and timeframe. If they are from different timeframes, the calculation will not be correct.


4. Hit calculate and get your answer instantly!

Example Calculation

Let's say we own a trampoline business where we buy and sell trampolines. We wanted to assess our net profit margin for the entire past year. Last year our net profit was $145,000 while our total revenue was $385,000. We can use this tool to find the net profit margin achieved.

First, we will enter 145,000 into the net profit field. Next, we will enter 385,000 into the total revenue field. We can now hit calculate and find our net profit margin to be 37.66%.