Free Net Profit Margin Calculator
Net profit margin is what's actually left after every cost, tax and interest payment. This calculator walks you through the full P&L waterfall — revenue to gross to operating to net — so you can see exactly where the money goes.
Results
Revenue
$100,000.00
− COGS → Gross profit
$60,000.00 (60.0%)
− Opex → Operating profit
$30,000.00 (30.0%)
− Tax/interest → Net profit
$25,000.00 (25.0%)
Revenue breakdown
- COGS40.0%
- Operating expenses30.0%
- Taxes & interest5.0%
- Net profit25.0%
About the Net Profit Margin Calculator
The P&L waterfall
Revenue − COGS = Gross Profit. Gross Profit − Operating Expenses = Operating Profit. Operating Profit − Taxes & Interest = Net Profit. Each stage has its own margin percentage, and each tells you a different story.
What each margin tells you
Gross margin: is the product itself profitable? Operating margin: is the business efficient at running the operation? Net margin: after everyone else is paid, what's left for the owners? Investors look hardest at operating margin.
Benchmarks worth knowing
Net margin under 5% is fragile; 10% is healthy for most industries; 20%+ is exceptional. Software often runs 20–30% net; grocery retail runs 1–3%. Same net-dollar profit, very different business models.
Frequently asked questions
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