15.00% is the example result. Use net profit on the same reporting basis as revenue. This ratio reads a supplied profit amount; it does not construct a profit-and-loss statement.
Convert your reported net profit into a percentage of revenue. Use this when you need to compare profitability across periods with different sales volumes.
Read the final profit share
Enter net profit rather than gross profit. The calculator divides the supplied profit by revenue; it does not assemble a profit and loss statement or decide which expenses belong in it.
When to use this result
Review the source statement when revenue rises but net margin falls. A larger absolute profit can coexist with a smaller percentage if expenses grew faster than sales.
Check before you act
Keep the reporting period and currency the same. Revenue of zero cannot produce a meaningful net margin.
Example with the supplied inputs
Revenue: 50000; Net profit: 7500. Result: 15.00%. The values are illustrative.
Compare one changed input
Revenue changes from 50000 to 55000. The result becomes 13.64%. All other inputs remain fixed.
Calculation rule
Result = (([Net profit]) ÷ ([Revenue])) × 100
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Revenue | 50000 | Use revenue on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Net profit | 7500 | Use net profit on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 15.00% is the example result. Use net profit on the same reporting basis as revenue. This ratio reads a supplied profit amount; it does not construct a profit-and-loss statement. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Revenue, Net profit. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Revenue on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 15.00%.
Change Revenue from 50000 to 55000 while keeping every other value fixed. The result becomes 13.64%. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.