Net Profit Margin Calculator
Calculate your net profit margin percentage after all expenses, interest and tax to gauge overall business profitability.
Your results
Calculation breakdown
- Net profit margin
- (Net profit ÷ Revenue) × 100
Worked example
A Melbourne consultancy with $200,000 revenue and $24,000 net profit after all expenses and tax has a net profit margin of 12%.
Assumptions
- Net profit should be after all expenses, interest and tax for the period.
- A negative net profit will show as a negative margin, meaning a loss.
- This is a general estimate, not accounting or tax advice.
How this calculator works
Net profit margin shows what share of revenue remains after every expense is paid, including operating costs, interest and tax. Enter revenue and net profit to see the ratio expressed as a percentage.
Frequently asked questions
How is net profit margin different to gross margin?
Gross margin only deducts direct production costs; net margin deducts everything, including overheads, interest and tax.
What net margin is considered good?
It depends on the industry, but many small Australian businesses aim for 10–20% net margin as a general guide.
Can net profit margin be negative?
Yes — a negative margin means the business made a loss for the period entered.
Results are estimates only and are not financial, tax, legal or credit advice.