Net Margin Calculator — Bottom Line Profitability
Free net margin calculator. Calculate your net profit margin after all expenses.
Formula: Net Income / Revenue × 100
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What Is This Calculator?
Net margin (net profit margin) measures the percentage of revenue remaining after all expenses, including COGS, operating costs, interest, and taxes. It is the ultimate measure of a company's profitability. A 10% net margin means $0.10 of every dollar is profit.
How to Calculate
To calculate net margin: 1) Find total revenue. 2) Subtract ALL expenses (COGS, operating, interest, taxes). 3) This gives net income. 4) Divide by revenue. 5) Multiply by 100. Formula: Net Margin = (Revenue − All Expenses) / Revenue × 100.
Examples
Example: Revenue of $100,000 with total expenses of $85,000. Net Income = $15,000. Net Margin = $15,000 / $100,000 × 100 = 15%.
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QuickBooks provides comprehensive P&L reporting with automatic net margin calculations.
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