# Net Profit Margin Calculator

## Net Profit Margin Formula

Net Profit Margin =Net Income / Sales Revenue

### What is Net Profit Margin?

Net Profit Margin is used to evaluate a company's revenues in respect to its net income, based on every $1 it makes from sales. When evaluating this measure, it is good to look at others within the same industry to get a better idea of how you are doing as every industry has its own "norm" for profit margins.The video below provides a really good explanation of net profit margin and how to calculate it

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