Net Profit Margin = (Net Profit ÷ Revenue) × 100
Net Profit = Total Revenue – Total Expenses
Use net profit after all costs, taxes, interest, and operating expenses are deducted
Divide net profit by total revenue
Multiply the result by 100 to get a percentage
Example: If net profit is $20,000 and revenue is $100,000, Net Profit Margin = (20,000 ÷ 100,000) × 100 = 20%