Net Profit Margin Calculator
Find your net profit margin in seconds: enter total revenue and net income (profit after all expenses and taxes) to see what percentage of every dollar of sales you actually keep.
Percentage of revenue that becomes profit after all costs
18 %
marginNet profit
18%
Costs
82%
- 1
Net income ÷ revenue
18,000 ÷ 100,000 = 0.18 - 2
Net Profit Margin
0.18 × 100 = 18Percentage of revenue retained as profit after all costs and taxes.
How does this calculator work?
Net Profit Margin = (Net Income ÷ Revenue) × 100. Enter your total revenue and after-tax profit; the calculator shows the margin percentage plus the split of revenue into profit and costs. A higher margin means more profit kept from every dollar of sales.
Formula
How this is calculated
Net profit margin divides net income — what remains after subtracting every cost including cost of goods sold, operating expenses, interest and income taxes — by total revenue, then multiplies by 100 to express the result as a percentage. A 20% margin means the business keeps 20 cents of profit for every dollar of sales.
The calculator also shows the total costs (revenue minus net income) and the cost ratio, so you can see how the revenue splits between keeping and spending. The donut chart visualises the profit/cost breakdown directly from your inputs.
Net profit margin differs from gross margin (which ignores operating costs, interest and tax) and operating margin (which ignores interest and tax). All three matter when analysing a business, but net profit margin is the most complete measure of bottom-line efficiency because it captures every cost incurred.
Frequently asked questions
It varies widely by industry. Grocery retail may average 2–3%, while software companies can exceed 20–30%. Compare your figure to industry benchmarks rather than a single universal threshold.
Gross margin deducts only the direct cost of goods sold from revenue. Net margin goes further, subtracting operating expenses, interest and taxes — giving a full picture of bottom-line profitability.
Yes. If net income is negative (a net loss), the margin is negative, meaning the business is spending more than it earns. This is common for early-stage companies investing heavily in growth.
Also known as
TG we-Calculate Editorial Team. (2026). Net Profit Margin Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/net-profit-margin-calculator
TG we-Calculate Editorial Team. "Net Profit Margin Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/net-profit-margin-calculator.
TG we-Calculate Editorial Team, "Net Profit Margin Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/net-profit-margin-calculator
@misc{wecalculate_net_profit_margin_calculator, title = {Net Profit Margin Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/net-profit-margin-calculator}}, year = {2026}, note = {TG we-Calculate} }
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