Net Profit Margin Calculator

# 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,**

- Remember that net profit = total revenues – total expenses, with total expenses including operating expenses, interest expenses, and taxes.
- 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.
- 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.
- 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%