Net Profit Margin Calculator

Quick answer

The net profit margin calculator works out net profit margin (net income as a percentage of revenue) from revenue and either net income or the full list of expenses.

$
$
Net profit margin
8 %
Total expenses
$ 1,104,000.00
Profit per $100 of sales
$ 8.00

Net margin shows how much of each dollar of sales becomes profit. The average across U.S. industries is roughly 7–10%, but software firms can exceed 20% while supermarkets run at 1–3%.

How to use the Net Profit Margin Calculator

  1. Revenue
  2. Net income

Results update as you type, and every field accepts the units shown in its menu.

How it works

Enter revenue and net income.

Inputs explained

Field What to enter
Revenue Amount in your currency
Net income Amount in your currency

What each result means

  • Net profit margin = [Net income]÷[Revenue]×100
  • Total expenses = [Revenue] – [Net income]
  • Profit per $100 of sales = [Net income]÷[Revenue]×100

Example values

How the main result changes when Revenue changes and everything else stays at the example values above:

Revenue Net profit margin (%)
600,000 16
900,000 10.67
1,200,000 8
1,500,000 6.4
1,800,000 5.33
2,400,000 4

Formula

Net profit margin = net income ÷ revenue × 100 Net income = revenue − COGS − operating expenses − interest − taxes

Worked example

Inputs: Revenue: $1,200,000; Net income: $96,000.
Results: Net profit margin = 8 %; Total expenses = $1,104,000.00; Profit per $100 of sales = $8.00.

Frequently asked questions

What is a good net profit margin?

About 10% is average; 20% is high; 5% is low.

How do I improve net profit margin?

Raise prices, cut costs, or reduce interest and taxes.

Can net profit margin be negative?

Yes, when the company makes a loss.

Sources

  1. Corporate Finance Institute: financial ratios

Cite this calculator

Speedy Calculator. (2026). Net Profit Margin Calculator. Speedy Calculator. https://speedycalculator.com/calculators/finance/net-profit-margin/