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The net profit margin calculator allows you to work out a simple and intuitive measure of a company's profitability in relation to its total revenues. It's a straightforward way to determine how large the profit generated by a single dollar of sales is. Learn more about this in our retained earnings calculator.
The Net Profit Margin Calculator is a simple tool for analyzing the profitability of a business. It computes the percentage of total revenue that constitutes net profit, facilitating wise decision-making for business growth.
The net profit margin is net profit divided by revenue (or net income divided by net sales). For gross profit, gross margin percentage and mark up percentage, see the Margin Calculator. Profit Margin Formula: Net Profit Margin = Net Profit / Revenue. Where, Net Profit = Revenue - Cost.
This margin calculator will be your best friend if you want to find out an item's revenue, assuming you know its cost and your desired profit margin percentage.
Net profit margin is determined by dividing a company's net income by its revenue and multiplying the result by 100. The net profit margin formula is described in greater detail later in this...
Net Profit Margin Formula. Net Profit Margin = Net Profit ⁄ Total Revenue x 100. Net profit is calculated by deducting all company expenses from its total revenue. The result of the profit margin calculation is a percentage – for example, a 10% profit margin means for each $1 of revenue the company earns $0.10 in net profit.
The net profit margin formula looks at how much of a company's revenues are kept as net income. The net profit margin is generally expressed as a percentage. Both net income and revenues can be found on a company's income statement. Use of Net Profit Margin Formula.