Net Profit Margin Calculator

Net Profit Margin Calculation

Online finance net profit calculator to calculate percentage of revenue after operating expenses by using net profit margin formula.

Formula:

Net Profit Margin = [NP

Where,
RS = Sales Revenue
NP = Net Profit

Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue.

How can net profit be improved?

  • Increase selling price
  • Decrease cost of sales
  • Decrease overheads/expenses

How to Calculate Net Profit Margin

The equation to calculate net profit margin is: Net Profit Margin = [Net Profit / Sales Revenue]

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