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Businesspricing

Net Profit Margin Calculator

The bottom line as a percentage of the top line. What survives after every cost, interest payment and tax.

Also called: net profit margin calculator, bottom line margin.

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Net margin
12%

12% net margin. $12,000 left from $100,000 after every cost, interest and tax.

Method and background

How this is calculated

Net income over revenue. It is the least flattering margin and the most comparable one across companies, because everything that could have been reclassified higher up has already been counted.

net_margin = net_income / revenue * 100
R
Revenue (currency)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

12% net margin

Revenue
$100,000.00
Net income after everything
$12,000.00

Net margin12%

arithmetic identity

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a loss is a negative margin

Revenue
$100,000.00
Net income after everything
-$5,000.00

Net margin-5%

boundary: losses are representable

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zero revenue

Revenue
$0.00
Net income after everything
-$5,000.00

Net margin0%

degenerate case

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