Profit percentage is similar to markup percentage when you calculate gross margin. Revenue Selling Price. Net profit margin is calculated as follows.
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The net profit margin ratio is an accounting ratio that is used to determine the percentage of profit that your company can generate from total revenue. You can calculate all three by dividing the profit revenue minus costs by the revenue. Formula For Profit Percentage is given below. Although the formula is simplistic applying the concept is important in that 4 of sales will result in after tax profit.