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    Calculators
    For a business to survive in the long term it must generate profit. Therefore the net profit margin ratio is one of the key performance indicators for your business.

    Use information from your business' annual profit and loss statements to input into the calculator.

    For information on using this calculator see below.
    Calculator Net Profit Margin Calculator
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    reset calculate

    The net profit margin ratio indicates profit levels of a business after all costs have been taken into account.

    It is worth analysing the ratio over time. A variation in the ratio from year to year may be due to abnormal conditions or expenses. Variations may also indicate cost blowouts which need to be addressed.

    A decline in the ratio over time may indicate a margin squeeze suggesting that productivity improvements may need to be initiated. In some cases, the costs of such improvements may lead to a further drop in the ratio or even losses before increased profitability is achieved.


    The calculation used to obtain the ratio is:
     

    Net Profit Margin =

     Net Profit    x 100
        Sales

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    Disclaimer

    This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.

    ANZ will not store the information provided in this calculator.