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Net Profit Margin Calculator

Net Profit Margin Calculator is a ratio worksheet. Default 64 / 100.

Page updated 2026-09-14.

Net Profit Margin Calculator visual
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Calculated Results

Net margin

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x : 1

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Net profit margin in one line

Net profit margin = net income / revenue, expressed as a percentage. What is left after every expense, interest, and tax.

On the defaults, 12 of net income against 100 of revenue works out to 12.0%.

Reading the result

This is one line of a larger income statement. Compare it against the Operating Margin Calculator to see how it fits with a related metric, and track it over multiple periods rather than judging a single snapshot.

Frequently Asked Questions (FAQ)

How is net profit margin calculated?

Net profit margin = net income / revenue x 100. What is left after every expense, interest, and tax. Defaults: 12 / 100 = 12.0%.

Why do I see both a percent and an "x: 1" figure?

The percent is the margin most people quote. The "x: 1" figure is the same division shown as a raw ratio (for example 0.62: 1) instead of a percentage, which is the convention some ratio metrics use on financial statements.

What counts as the denominator?

Use whatever revenue figure matches the period you are analyzing -- monthly, quarterly, or annual -- as long as the numerator (net income) covers the same period.

Is a higher or lower number better?

Higher is generally better for a margin: it means more of each revenue dollar turns into profit at that stage of the income statement. Compare against your own trend over time and against public companies in the same industry, since healthy margins vary a lot by sector.

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