Net Profit Margin

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Net profit margin, abbreviated as NPM, also called net margin, is the percentage of revenue left after all expenses have been deducted from sales.

 

Net profit Margin Formula

\(\large{ NPM =  \frac{ NP }{ TR } \; 100  }\)  

Where:

\(\large{ NPM }\) = net profit margin

\(\large{ NP }\) = net profit

\(\large{ TR }\) = total revenue

 

Tags: Equations for Manufacturing