Net Profit Margin Calculator
What survives after every cost, as a percentage.
Net profit margin
12.6%
$12,640 on $100,000
5-15% is typical for established ecommerce. Under 5% leaves little room for a bad quarter.
How the Net Profit Margin Calculator works
Net margin is the last line: what remains of every pound of revenue once goods, overheads, interest and tax have taken their share. It is the only margin that answers whether the business is actually making money rather than merely turning over.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do you calculate net profit margin?
Net profit ÷ revenue × 100, where net profit is revenue minus cost of goods, minus operating expenses, minus interest, minus tax. Every cost the business incurs belongs somewhere in that chain.
What is a good net profit margin for ecommerce?
Typically 5-15% for established stores, and lower during growth phases when advertising is being pushed hard. Under 5% leaves no room for a bad quarter. Above 20% is strong and usually indicates either a premium brand or unusually efficient acquisition.
What is the difference between gross and net margin?
Gross margin subtracts only the cost of the goods. Net margin subtracts everything else too — advertising, software, rent, wages, interest and tax. The gap between them is where most ecommerce businesses actually live or die.
Should net margin include the owner's salary?
If you take a salary, yes — it is a cost of running the business. If you do not, calculate it both ways. A business that is only profitable because the owner works unpaid is not yet profitable; it is subsidised.