# Net Profit Margin

*Accounting & Reporting — Finicade finance glossary*

Net profit margin is net income as a percentage of revenue — what actually survives after every cost, interest and tax. It's the headline profitability number and the least comparable one, since it embeds capital structure, tax rates and one-off items. In DuPont analysis it's one of three levers on return on equity, alongside asset turnover and leverage.

**Formula:** `Net profit margin = Net income ÷ Revenue`

**Also known as:** net margin, bottom line margin, profit margin

**Related terms:** [Operating Margin](https://finicade.com/glossary/operating-margin), [Gross Margin](https://finicade.com/glossary/gross-margin), [Net Income](https://finicade.com/glossary/net-income), [DuPont Analysis](https://finicade.com/glossary/dupont-analysis), [Return on Assets](https://finicade.com/glossary/return-on-assets)

Source: https://finicade.com/glossary/net-profit-margin