# 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