Finance & Moneyintermediate
Net Profit Margin
Definition
The percentage of your sales left as profit after every cost is paid, including stock, wages, rent, tax and fees.
Why it matters
Net profit margin shows whether your business is truly making money, not just bringing in revenue, which is what keeps you in business long term.
Example
If you make £100,000 in sales and £15,000 is left after all costs, your net profit margin is 15 percent.
Related terms
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