Below is an net margin calculator or net profit margin calculator to compute a company's bottom line margin. Enter a company's top line revenues and bottom line earnings to compute its net income margin
Net Profit Margin Calculator
What is the Net Profit Margin?
Net income margin measures a company's earnings efficiency, and it the percentage of revenue that net income represents. Unlike other margins, it is the "cleanest" measure of a company's profitability, using net income the company reports to the market on top of its top line sales number.
Net Income does sometimes disguise good (and bad) things happening at companies, however. Other margin metrics like EBIT, EBITA, and EBITDA can show a company's efforts in a turnaround and hint at future profits, and might better align with company cash flows. Gross profit margins show the company's basic economics and the business opportunity, and operating margin strips out any non-operating incomes and expenses.
Net Profit Margin Formula
The formula for net profit margin is:
Net\ Profit\ Margin=\frac{net\ income}{revenue}Where:
- Net Income: Net income from the income statement
- Revenue: The company's top line sales
Margin Calculators
Once you're done computing net margin, try some of the other margin calculators:
