Mathematically it is represented as Profit Total Sales Total Expenses. For gross profit gross margin percentage and mark up percentage see the Margin Calculator. Reduce overall direct costs.
The formula for profit is very simple and it is expressed as the difference between the total sales or revenue and the total expenses.
To calculate your net profit margin divide your net income by your total sales revenue. Profit percentage Equation Net Sales Expenses Net Sales or 1 Expenses Net Sales So if the ratio of Expenses to Net sales could be minimized a higher profit could be achieved. How to Calculate Net Profit Margin For example the net profit margin from Company Z would be 30000 100000 30. Businesses calculate profit margins because they make it easier to assess company performance than relying on the actual dollar figures alone.