Quick answer
Net profit margin = net profit ÷ revenue × 100. $62,000 of net profit on $500,000 of revenue is a 12.4% margin.
Enter revenue and net profit. The calculator returns the margin.
Related tools: Contribution Margin Calculator: Per-unit contribution and contribution margin ratio. EBITDA Margin Calculator: EBITDA as a share of revenue. Operating Margin Calculator: Operating income as a share of revenue.
How to use the Net Profit Margin Calculator
- Enter revenue ($) (above 0).
- Enter net profit ($).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Revenue | A number, in $ | > 0 |
| Net profit | A number, in $ | — |
Formula and method
Formula
margin = profit measure ÷ revenue × 100
IEEE-754 double precision; shown to the decimals indicated.
Use the same period and currency for both numbers.
Worked examples
This example is verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Revenue = 500000; Net profit = 62000.
| Result | Value |
|---|---|
| Net Profit Margin | 12.4% |
| Profit as an amount | $62,000.00 |
The first line is the headline result (net Profit Margin). Below it the net Profit Margin Calculator lists profit as an amount, which describe the same case from other angles. IEEE-754 double precision; shown to the decimals indicated.
What net profit includes
Net profit is what remains after all expenses: cost of goods, operating costs, interest and taxes. A 12.4% margin means the business keeps about 12 cents of each dollar of sales.
Comparing
Margins vary by industry, with grocers often under 5% and software firms above 20%. A negative profit gives a negative margin. Look at gross and operating margins to see where costs are eating profit.
How the result changes with revenue
Holding every other input at the first worked example, this table changes only revenue. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Revenue | Net Profit Margin | Profit as an amount |
|---|---|---|
| 250000 | 24.8% | $62,000.00 |
| 500000 | 12.4% | $62,000.00 |
| 1000000 | 6.2% | $62,000.00 |
| 2000000 | 3.1% | $62,000.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Revenue: entering "0" shows "Revenue must be greater than 0." beside that field and no result.
- Net profit: left empty shows "Enter net profit." beside that field and no result.
Choosing between the Net Profit Margin Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Contribution Margin Calculator](/business/contribution-margin-calculator/) | selling price per unit and variable cost per unit | Contribution per unit |
| [EBITDA Margin Calculator](/business/ebitda-margin-calculator/) | revenue and eBITDA | EBITDA Margin |
| [Operating Margin Calculator](/business/operating-margin-calculator/) | revenue and operating income | Operating Margin |
| [Revenue Calculator](/business/revenue/) | price per unit and units sold | Revenue |
| [Margin Calculator](/business/margin-calculator/) | cost and revenue | Gross margin |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Negative profit gives a negative margin
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for revenue and net profit to confirm this.
Frequently asked questions
What is a good net margin?
About 10% is often called healthy, but it depends on the industry.
How is it different from gross margin?
Gross margin only subtracts the cost of goods sold.
Can I use it for a year or a month?
Yes, as long as profit and revenue cover the same period.
What does the Net Profit Margin Calculator calculate?
Net profit as a share of revenue. It returns Net Profit Margin and Profit as an amount.
What formula does the Net Profit Margin Calculator use?
margin = profit measure ÷ revenue × 100. Use the same period and currency for both numbers.
What do I need to enter in the net Profit Margin Calculator?
You enter Revenue ($) and Net profit ($).
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Negative profit gives a negative margin.
What is an example of a net Profit Margin result?
With revenue 500000 and net profit 62000, the net Profit Margin is 12.4%.
Related calculators
- Contribution Margin Calculator — Per-unit contribution and contribution margin ratio.
- EBITDA Margin Calculator — EBITDA as a share of revenue.
- Operating Margin Calculator — Operating income as a share of revenue.
- Revenue Calculator — Revenue from price and units sold.
- Margin Calculator — Profit, gross margin and markup from cost and revenue.
- Net Revenue Retention Calculator — Net and gross revenue retention for a starting recurring-revenue base.
Sources
- OpenStax, Principles of Accounting, Volume 2: Managerial Accounting (Rice University)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.