50% Off December Deal – Discount Automatically Applied!
eCommerce Net Profit Margin Calculator
Useful
Why it's useful to use
The Net Profit Margin calculator is a vital tool for eCommerce entrepreneurs to determine how much profit your business is making after all expenses. By calculating this margin, you can assess the overall efficiency of your business, optimize cost structures, and make data-driven decisions to improve profitability. Understanding your net profit margin helps you evaluate the financial health of your business, plan for growth, and set realistic financial goals.
Formula
How the tool works
The net profit margin is calculated by subtracting total expenses from total revenue, dividing the result by total revenue, and then multiplying by 100 to get a percentage. The formula is:
Net Profit Margin = ((Total Revenue – Total Expenses) / Total Revenue) * 100
This percentage represents how much profit you are making from each dollar of revenue after all expenses are accounted for. For example, if your total revenue is $20,000 and your total expenses are $15,000, the net profit margin would be 25%. This means that for every dollar you make, you retain 25 cents in profit after covering all costs.
Built by sellers for sellers with the mission to help entrepreneurs start and grow successful businesses.