Gross Profit Margin: Formula and Calculation Using the following formula, you can easily calculate gross profit margin: Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x 100 For ...

For instance, if your company reports a 25% profit margin, that means it earned a net income of $0.25 for every dollar of sales generated.

Net margin, or net profit margin, shows the amount of net profit a company generates as a percentage of its revenue. Net Margin (%) = (Net Profit/ Total Revenue)*100 ...

For example, if a company generates $1,000 in revenue and has $800 in expenses, its profit is $200. The profit margin, in this case, would be 20%.

Net Profit Margin = Net profit/Sales * 100 In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses.