Net Profit Margin Calculator

Net Profit Margin - figures update as you type, nothing leaves your browser.

Maintained by Roshan.

Use Net Profit Margin Calculator

Figures update as you type. Nothing you enter leaves this tab, and no values are stored.

RevenueTotal costs

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About Net Profit Margin Calculator

A net profit margin calculator takes revenue and total costs and returns both the net profit in money and the margin as a percentage of revenue - the single figure that tells you how much of every pound of sales you actually keep. It is the number investors, lenders and owners look at first, because two businesses with the same revenue can have very different margins. Enter revenue and costs, and the profit and margin appear at once, computed in your browser. Net profit margin is the figure that survives when everything else is stripped away, which is why lenders, investors and owners reach for it first. Two businesses can post identical revenue and one thrives while the other fails, and the margin is what tells them apart. The calculation is simple but only as truthful as the costs you feed it: leave out overheads, wages or tax and the margin flatters you into decisions the real numbers do not support. Use total costs for the same period as the revenue, and run consecutive periods to watch the trend, because a margin moving the wrong way is an early warning that a headline revenue figure will happily hide.

Using Net Profit Margin Calculator

Enter total revenue for the period.
Enter total costs - everything spent to earn that revenue.
The net profit and the net profit margin update as you type.

Where net profit margin calculator helps

Checking business health

£10,000 revenue on £7,000 costs is £3,000 profit - a 30% net margin.

Comparing periods

Run last quarter and this quarter to see whether your margin is improving.

Compare periods on the same basis

If revenue is 20,000 and total costs are 18,000, the remaining 2,000 is 10% of revenue. Leaving a 1,000 expense out would show 15% instead. Use comparable cost categories and accounting periods before interpreting a change as improved performance.

Before you use the result

Margin is only as accurate as the costs you include; leaving out overheads or tax overstates it.
It measures a period you define - a month, a quarter, a year - so use figures from the same period for both inputs.
Nothing is stored beyond this tab.

Questions about Net Profit Margin Calculator

What is a good net profit margin?

It varies enormously by industry, so compare against businesses like yours. The tool gives the exact figure to compare.

What costs should I include?

All of them - cost of goods, overheads, wages and tax - for a true net margin. Leaving costs out inflates it.