How this calculator works
Enter the values for first value, second value and review the units before calculating.
Formula / method
Net margin = net income ÷ revenue × 100
Worked example
$15,000 net income on $100,000 revenue gives a 15% net margin.
Assumptions and limitations
Net income already includes the expenses and taxes being analyzed.
Accounting policies and one-time items can make comparisons misleading.