Accounting Calculator
Calculate accounting ratios and equations.
Profit Margin
Net Profit:
Revenue:
Profit Margin:
Formula: Profit Margin = Net Profit / Revenue

About this Formula

The profit margin, also known as the net profit margin, shows the percentage of a company's revenue that remains after they have paid the associated expenses. To get your profit margin, start by calculating your net income (net profit). Next, divide the net income by the revenue. A higher profit margin means a higher net income.