Net profit margin, profit margin, or net profit ratio is a financial ratio to measure the profitability of the given company. It is used to calculate how much percentage of the profit a company generates from its total revenue.
It illustrates each sale of the company is generated appropriate revenue and how much revenue converts into profit.
The net profit margin is not solely the amount of cash left in the account after all of the costs are covered, that is the gross profit margin. In the net profit margin, you have to consider into account all of the operating expenses, interest payments, and taxes.
The formula for calculating net profit margin is as follows:
Calculate, Net Profit Margin = Net Profit / Total Revenues
What can you do with Perpetuity Calculator?
- It helps to calculate the net profit margin and helps to measures the profit and growth of your company.
- Users can see the accurate value of the net profit margin.
- This calculator helps to share your calculations by URL.