The formula to calculate Net Profit Margin is:
\[ \text{Net Profit Margin} = \frac{\text{Net Income}}{\text{Sales}} \times 100 \]
Where:
Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest.
Let's assume the following values:
Using the formula:
\[ \text{Net Profit Margin} = \frac{200000}{1000000} \times 100 \]
Evaluating:
\[ \text{Net Profit Margin} = 20 \]
The Net Profit Margin is 20%.
| Net Income | Sales | Net Profit Margin (%) |
|---|---|---|
| 50000 | 100000 | 50.00 |
| 50000 | 200000 | 25.00 |
| 50000 | 300000 | 16.67 |
| 50000 | 400000 | 12.50 |
| 50000 | 500000 | 10.00 |
| 50000 | 600000 | 8.33 |
| 50000 | 700000 | 7.14 |
| 50000 | 800000 | 6.25 |
| 50000 | 900000 | 5.56 |
| 50000 | 1000000 | 5.00 |
| 100000 | 100000 | 100.00 |
| 100000 | 200000 | 50.00 |
| 100000 | 300000 | 33.33 |
| 100000 | 400000 | 25.00 |
| 100000 | 500000 | 20.00 |
| 100000 | 600000 | 16.67 |
| 100000 | 700000 | 14.29 |
| 100000 | 800000 | 12.50 |
| 100000 | 900000 | 11.11 |
| 100000 | 1000000 | 10.00 |
| 150000 | 100000 | 150.00 |
| 150000 | 200000 | 75.00 |
| 150000 | 300000 | 50.00 |
| 150000 | 400000 | 37.50 |
| 150000 | 500000 | 30.00 |
| 150000 | 600000 | 25.00 |
| 150000 | 700000 | 21.43 |
| 150000 | 800000 | 18.75 |
| 150000 | 900000 | 16.67 |
| 150000 | 1000000 | 15.00 |
| 200000 | 100000 | 200.00 |
| 200000 | 200000 | 100.00 |
| 200000 | 300000 | 66.67 |
| 200000 | 400000 | 50.00 |
| 200000 | 500000 | 40.00 |
| 200000 | 600000 | 33.33 |
| 200000 | 700000 | 28.57 |
| 200000 | 800000 | 25.00 |
| 200000 | 900000 | 22.22 |
| 200000 | 1000000 | 20.00 |
| 250000 | 100000 | 250.00 |
| 250000 | 200000 | 125.00 |
| 250000 | 300000 | 83.33 |
| 250000 | 400000 | 62.50 |
| 250000 | 500000 | 50.00 |
| 250000 | 600000 | 41.67 |
| 250000 | 700000 | 35.71 |
| 250000 | 800000 | 31.25 |
| 250000 | 900000 | 27.78 |
| 250000 | 1000000 | 25.00 |
| 300000 | 100000 | 300.00 |
| 300000 | 200000 | 150.00 |
| 300000 | 300000 | 100.00 |
| 300000 | 400000 | 75.00 |
| 300000 | 500000 | 60.00 |
| 300000 | 600000 | 50.00 |
| 300000 | 700000 | 42.86 |
| 300000 | 800000 | 37.50 |
| 300000 | 900000 | 33.33 |
| 300000 | 1000000 | 30.00 |
| 350000 | 100000 | 350.00 |
| 350000 | 200000 | 175.00 |
| 350000 | 300000 | 116.67 |
| 350000 | 400000 | 87.50 |
| 350000 | 500000 | 70.00 |
| 350000 | 600000 | 58.33 |
| 350000 | 700000 | 50.00 |
| 350000 | 800000 | 43.75 |
| 350000 | 900000 | 38.89 |
| 350000 | 1000000 | 35.00 |
| 400000 | 100000 | 400.00 |
| 400000 | 200000 | 200.00 |
| 400000 | 300000 | 133.33 |
| 400000 | 400000 | 100.00 |
| 400000 | 500000 | 80.00 |
| 400000 | 600000 | 66.67 |
| 400000 | 700000 | 57.14 |
| 400000 | 800000 | 50.00 |
| 400000 | 900000 | 44.44 |
| 400000 | 1000000 | 40.00 |
| 450000 | 100000 | 450.00 |
| 450000 | 200000 | 225.00 |
| 450000 | 300000 | 150.00 |
| 450000 | 400000 | 112.50 |
| 450000 | 500000 | 90.00 |
| 450000 | 600000 | 75.00 |
| 450000 | 700000 | 64.29 |
| 450000 | 800000 | 56.25 |
| 450000 | 900000 | 50.00 |
| 450000 | 1000000 | 45.00 |
| 500000 | 100000 | 500.00 |
| 500000 | 200000 | 250.00 |
| 500000 | 300000 | 166.67 |
| 500000 | 400000 | 125.00 |
| 500000 | 500000 | 100.00 |
| 500000 | 600000 | 83.33 |
| 500000 | 700000 | 71.43 |
| 500000 | 800000 | 62.50 |
| 500000 | 900000 | 55.56 |
| 500000 | 1000000 | 50.00 |