Net Profit Margin Calculator

The net profit margin calculator shows what share of every sales dollar you keep as profit once all costs are accounted for. You enter your net profit and your total revenue for the period, and the tool returns your net profit margin as a percentage. Net profit is the figure left after every expense has been deducted from revenue, including the cost of goods sold, wages, overheads, interest, depreciation, and tax if you choose to include it. Dividing that profit by revenue turns it into a margin, which is far more useful for comparison than the dollar figure alone, because it strips out the effect of size. A business turning over millions and one turning over thousands can be compared fairly on margin. A New Zealand business owner, manager, or investor can use this to track profitability over time, benchmark against competitors, and judge whether growth in sales is actually flowing through to the bottom line. To get a meaningful result, make sure net profit and revenue cover the same period and that net profit reflects all costs, since a margin built on understated expenses will flatter the business. Watch the trend across several periods rather than reading too much into a single quarter, and pair the margin with the dollar profit so you keep sight of the actual money earned. If your margin is falling while sales rise, costs are likely climbing faster than revenue, which is worth investigating early. All figures are in New Zealand dollars and the result is an estimate to guide decisions, not a substitute for advice from your accountant.

Net margin = net profit / revenue. Estimate only, not financial or tax advice.