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Calculate the net profit margin, net profit and profit percentage of sales from the cost and revenue. The net profit margin is net profit divided by revenue (or net income divided by net sales).
Profit Margin Formula:
Net Profit Margin = Net Profit / Revenue
Where, Net Profit = Revenue – Cost
Profit percentage is similar to markup percentage when you calculate gross margin. This is the percentage of the cost that you get as profit on top of the cost.
Profit Percentage = Net Profit / Cost
Revenue = Selling Price
