Net Profit Margin Calculator
Enter your revenue and total costs to instantly calculate net profit margin with a formula breakdown and interpretation guide.
Enter Your Figures
$
$
Enter revenue and total costs, then click Calculate.
Net Profit Margin
—
0%10%20%+
Revenue
—
Total Costs
—
Net Profit
—
Formula Breakdown
Net Profit = Revenue − Total Costs
Net Profit Margin = (Net Profit ÷ Revenue) × 100
Benchmark Guide
| Margin Range | Interpretation |
|---|---|
| Below 0% | Loss — costs exceed revenue |
| 0% – 5% | Thin — little buffer for downturns |
| 5% – 10% | Average — typical for ecommerce |
| 10% – 20% | Good — healthy profitability |
| Above 20% | Excellent — strong margin business |
Summary
Enter your revenue and total costs to instantly calculate net profit margin with a formula breakdown and interpretation guide.
How it works
- Enter your total revenue (gross sales before deductions).
- Enter your total costs (all expenses: COGS, shipping, ads, salaries, taxes, etc.).
- The calculator subtracts costs from revenue to find net profit.
- Net profit is divided by revenue and multiplied by 100 for the margin percentage.
- A color-coded interpretation tells you whether your margin is strong, average, or thin.
Use cases
- Evaluate overall profitability of an ecommerce store or product line.
- Compare margin across different sales periods or channels.
- Determine how close you are to break-even or a target margin.
- Prepare financial summaries for investors or lenders.
- Benchmark against industry averages before setting pricing.
- Spot-check whether a recent cost increase eroded margins.
Frequently Asked Questions
Last updated: 2026-07-01 ·
Reviewed by Nham Vu