Net Margin Calculator

Calculate net profit margin from revenue and expenses. Measure overall business profitability after all costs are deducted.

Net profit margin is the ultimate measure of profitability, showing what percentage of revenue translates into profit after all expenses. It's a key indicator of financial health and efficiency.

Calculator

$
$
Net Profit
$0.00
Net Margin
0.00%
Expense Ratio
0.00%
Revenue
$0.00

Common use cases

  • Overall profitability analysis
  • Company comparison
  • Financial health assessment
  • Investment analysis

How to use

  1. Enter total revenue
  2. Enter total expenses (including COGS, operating, interest, taxes)
  3. View net profit and margin

FAQ

What's a good net margin?

Varies greatly by industry: Tech 15-25%, Retail 2-5%, Banks 20-30%, Manufacturing 5-10%.

How is net margin different from gross margin?

Gross margin only deducts COGS; net margin deducts all expenses including operating, interest, and taxes.

Can net margin be negative?

Yes, when expenses exceed revenue, resulting in a net loss.

This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.