Net Profit Margin Calculator

Posted by Dinesh on

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

Net Profit Margin Calculation

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]