Then we divide the result by the price. How to Calculate Margin Percentage In this example the gross margin is 25. Plugging this information into our net profit margin formula we get.
Net profit margin is similar to gross profit margin but instead of just considering COGS as a percentage of revenue it includes all expenses in the formula including operating expenses such as rent and utilities in addition to COGS.
Calculator Use Calculate the net profit margin net profit and profit percentage of sales from the cost and revenue. Net sales is calculated by subtracting any returns or refunds from gross sales. Subtract your cost of goods sold from your revenue totals to obtain gross profit in dollars. The net profit margin is net profit divided by revenue or net income divided by net sales.