Net Profit Percentage

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Net profit percentage, abbreviated as NPP, also called net income percentage, or net profit margin, is the percentage of profits after paying all expenses.

 

Net profit percentage Formula

\(\large{ NPP =  \frac{ NI }{ R } \; 100  }\)  
\(\large{ NPP =  \frac{ R \;-\; COGS \;-\; OE \;-\; I \;-\; T }{ R } \; 100  }\)  

Where:

\(\large{ NPP }\) = net profit percentage

\(\large{ COGS }\) = cost of goods sold

\(\large{ I }\) = interest

\(\large{ NI }\) = net income

\(\large{ OE }\) = operating expenses

\(\large{ R }\) = revenue

\(\large{ T }\) = taxes

 

Tags: Equations for Manufacturing