Net Profit Margin (NPM)
Net income as a percentage of revenue
FORMULA
Net Profit Margin % = (Net Income / Revenue) × 100
Alternate Calculations
Net Income
Revenue - All Expenses (COGS, Operating, Interest, Taxes)What is Net Profit Margin?
Net Profit Margin measures the percentage of revenue that becomes profit after all expenses, including taxes and interest. It represents the bottom-line profitability of a company and is the most comprehensive profitability metric. A higher net margin indicates stronger overall financial health and efficient cost management across the entire organization.
Chart
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700,000revenue · JunNet Profit Margin
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Sample Data
| month | revenue | netIncome | margin |
|---|---|---|---|
| Jan | 500,000 | 75,000 | 15 |
| Feb | 525,000 | 84,000 | 16 |
| Mar | 575,000 | 98,750 | 17 |
| Apr | 600,000 | 102,000 | 17 |
| May | 650,000 | 117,000 | 18 |
| Jun | 700,000 | 133,000 | 19 |
Required Data Columns
RevenueNet Income