The formula should divide the profit by the amount of the sale, or =(C2/A2)100 to produce a percentage. In the example, the formula would calculate (17/25)100 to produce 68 percent profit margin ...

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Net Profit Margin = (Net Profit / Revenue) x 100. To calculate the net profit margin, divide the net profit by total revenue and multiply by 100 to express the value as a percentage.

The formulas for net profit margin are either: ... How to Calculate Profit Margin in Excel . You may find it easier to calculate your gross profit margin using computer software.

Learn how to calculate net profit margin. ... Net Profit Margin Formula. Let's say a company generates $1 billion of revenue and $225 million of net income during a reporting period.

For example, the profit margin calculation is -10 percent if the company reports a loss of $20 million on sales of $200 million ($-20 million divided by $200 million).

Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted. Investors and businesses can use the net profit margin to assess ...