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Business Net Margin

Measure what percentage of revenue survives as net profit.

About Business Net Margin

Net profit is what remains after every cost, and net margin is that leftover as a share of revenue. Net margin reveals the true yield of each dollar of sales after all operating overhead is paid.

Formula

Business Net Margin

Net margin = (revenue - all expenses) / revenue x 100

all expenses
Everything from COGS to taxes

Worked example

With the default values below, Business Net Margin returns Net Margin of 15.0%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total revenue
200,000
Total all expenses
170,000

Results

Net Profit
$30,000
Net Margin
15.0%
Expense Ratio
85.0%

Step by step

  1. 1Values used
  2. 2Business Net Margin
  3. 3Net Margin= 15.0
  4. 4Net Profit= 30,000
  5. 5Expense Ratio= 85.0

Assumptions and limits

  • The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 1 decimal place, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Business Net Margin calculated?

Net margin = (revenue - all expenses) / revenue x 100 Net profit is what remains after every cost, and net margin is that leftover as a share of revenue.

Why does Business Net Margin matter?

Net margin reveals the true yield of each dollar of sales after all operating overhead is paid.

What values do I need to enter?

This calculator takes 2 inputs: Total revenue, Total all expenses. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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Business Net Margin – Calculate Net Margin & Net Profit