Net Profit Margin
Net profit margin shows what percentage of revenue becomes actual profit after paying all expenses - COGS, operating expenses, taxes, interest, everything. It's the ultimate "am I making money?" metric. A 10% net margin means for every $100 in sales, you keep $10 as profit.
Formula
(Net Income / Revenue) × 100
In plain English
How many cents of profit you keep from each dollar of sales
Why Net Profit Margin Matters
This is the bottom line metric. You can have great gross margins but lousy net margins if operating expenses are too high. It shows whether your business model actually works after accounting for everything.
Net Profit Margin by Industry
Choose your industry to see specific benchmarks, examples, and improvement strategies
Net Profit Margin for Cleaning Companies
How much money you actually keep after paying all expenses
Net Profit Margin for Salons & Spas
How much money you actually keep after paying all expenses
Net Profit Margin for Restaurants
How much money you actually keep after paying all expenses
Net Profit Margin for HVAC Contractors
How much money you actually keep after paying all expenses
Net Profit Margin for Marketing Agencies
How much money you actually keep after paying all expenses
Net Profit Margin for Consulting Firms
How much money you actually keep after paying all expenses
Net Profit Margin for Freelancers
How much money you actually keep after paying all expenses
Net Profit Margin for Creative Agencies
How much money you actually keep after paying all expenses
Net Profit Margin for IT Services
How much money you actually keep after paying all expenses
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