# Net Profit Margin Calculator

The net profit margin is determined by dividing net profit . The net profit margin equal to net profit divided total revenues.

The formula us,

net profit margin = net profit / total revenues

let us consider,

1.  Remember that net profit = total revenues – total expenses,  with total expenses including operating expenses, interest expenses, and taxes.
2. Take a look at the net profit margin formula above. The result of this equation is not an absolute number, but rather a percentage of total revenue.
3.  Employ net profit margin formula by dividing net profit by total revenue, or – since you’re here – do it using our net profit margin calculator.
4. Now scroll down to see how to interpret your calculations, and learn if there are proper or advisable values of the net profit margin ratio.

## Example of the net profit margin

Net profit (\$1,500,00) , total revenues ( 14,00,000)

net profit margin = net profit / total revenues

Net profit margin =  1,500,00 / 14,00,000

The answer is net profit margin = 10.714%