Net Profit Margin Formula: Excel, DAX, Calculator & Example

Simple formula

Net Profit / Revenue

The formula uses these inputs:

Net Profit: enter your value in the calculator or spreadsheet.
Revenue: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=IFERROR(B2/C2,0)

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=IFERROR(B2/C2,0)

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

Net Profit Margin =
DIVIDE(
    [Net Profit],
    [Revenue]
)

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS net_profit_margin
FROM kpi_data;

Net Profit Margin calculator

Net Profit Revenue

Result—

How to interpret Net Profit Margin

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

Mixing different time periods in the numerator and denominator.
Using totals that do not match the KPI definition used by your company.
Comparing results across teams or industries without context.

Related KPI formulas

Frequently asked questions

What is the Net Profit Margin formula?

The common Net Profit Margin formula is: Net Profit / Revenue.

How do you calculate Net Profit Margin in Excel?

Use this Excel formula pattern: =IFERROR(B2/C2,0). Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.

Net Profit Margin Formula

Ideas for You