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Finance

Net Margin

The percentage of revenue you actually keep after every single cost, including tax and interest. The true bottom line.

Example

Earning ₹50L and keeping ₹4L after everything is an 8% net margin.

Formula

Net Margin = Net Profit ÷ Revenue × 100

Related terms

P&L
एक अवधि की आय और खर्च का सारांश, जो बताता है कि लाभ हुआ या हानि। इसे आय विवरण भी कहते हैं।
Gross Margin
The share of each sale left over after the direct cost of making it — before overheads. Higher margins give you more room to grow.
Operating Margin
उत्पाद की लागत और व्यवसाय चलाने के खर्चों को चुकाने के बाद बचा हुआ राजस्व (revenue) का प्रतिशत।

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