Net Profit Margin Template
This Net Profit Margin template will show you how to calculate the net profit margin using a company’s income statement line items.
Here is a screenshot of the template:
Download the Free Template
Enter your name and email in the form below and download the free template now!
What is Net Profit Margin?
Net Profit Margin (also known as “Profit Margin” or “Net Profit Margin Ratio”) is a financial ratio used to calculate the percentage of profit a company produces from its total revenue. It measures the amount of net profit a company obtains per dollar of revenue gained. The net profit margin is equal to net profit (also known as net income) divided by total revenue, expressed as a percentage.
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. Revenue represents the total sales of the company in a period.