Net profit margin calculator

The net profit margin is a profitability ratio that measures the percentage of revenue that results in net profit.

Read this article to me
$
.00
$
.00

This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

Your results

Net profit margin

-

Get a quote

How to calculate net profit margin

Net profit margin is calculated using the following formula:

Net Profit Margin = (Net Profit / Total Revenue) * 100

To calculate the net profit margin, follow these steps:

  1. Determine your net profit: Calculate your net profit using the formula mentioned earlier, which is the difference between total revenue and total expenses.

  2. Calculate your total revenue: This includes all the income generated from sales, services, or any other sources.

  3. Apply the formula: Divide your net profit by your total revenue, then multiply the result by 100 to get the net profit margin percentage.

The net profit margin is a useful metric for evaluating the profitability of a business. A higher net profit margin indicates that a higher percentage of revenue is converted into profit, which is generally considered favourable. However, it’s important to consider industry standards and compare the net profit margin with competitors or historical data to gain a better perspective on your business’s performance.

Ready to grow your business?

Clever finance tips and the latest news

Delivered to your inbox monthly

Join the 95,000+ businesses just like yours getting the Swoop newsletter.

Free. No spam. Opt out whenever you like.

Our offices:

Disclaimer: Swoop Finance Pty Ltd (ABN 52 644 513 333) helps Australian firms access business finance, working directly with firms and their trusted advisors. We are a credit broker and do not provide finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance Pty Ltd can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness, we may receive a commission or finder’s fee for effecting such introductions. Swoop Finance Pty Ltd does not provide any kind of advice and in giving you information about providers products, we are not making any suggestion or recommendation to you about a particular product. Offers of finance are subject to a separate assessment process by the provider and subject to their terms and conditions. If you feel you have a complaint, please read our complaints section which is contained within our terms and conditions.

© Swoop 2025

Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop