Net Profit Margin Calculator
Calculate your net profit margin — the true bottom-line profitability after all expenses.
Expenses include COGS, operating costs, taxes, and interest.
What is Net Profit Margin?
Net profit margin is the percentage of revenue remaining after all expenses have been deducted — including cost of goods sold, operating expenses, interest, and taxes. It is the most comprehensive measure of a company’s profitability.
Net Profit Margin Formula
Net Profit Margin = (Revenue − Total Expenses) ÷ Revenue × 100
Example: Revenue = $100,000 | Total Expenses = $75,000 → Net Profit = $25,000 → Net Margin = 25%
Gross vs Net Profit Margin
Gross margin only subtracts direct production costs (COGS), giving a higher percentage. Net margin subtracts everything — it shows the true profitability. Use our Gross Profit Margin Calculator to compare, or see the full overview at our Profit Margin Calculator.
Net Margin vs Markup
Net margin and markup measure different things. Net margin is based on revenue; markup is based on cost. Learn more in our Profit Margin vs Markup guide.
Frequently Asked Questions
What expenses are included in net profit margin?
All expenses: COGS, salaries, rent, marketing, depreciation, interest on debt, and income taxes.
What is a good net profit margin?
Depends on the industry. Retail averages 2–5%, while technology companies can exceed 20%. Higher is better.
Can net margin be higher than gross margin?
No. Net margin is always lower than or equal to gross margin, because it subtracts more costs.