Formula
Net Margin = ((Revenue − COGS − OpEx − Interest) × (1 − Tax)) ÷ Revenue
FAQ
What's a good net margin?
Double-digit net margins are strong in most industries; many healthy businesses run 5–15%. Context matters more than absolute benchmarks.
Why is my net margin so different from gross margin?
The gap is your operating cost structure. A large gap suggests overhead — not product economics — is where attention should go.