We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Net profit margin

What is Net Profit Margin?

Investors and lenders often use net profit margin to determine whether a company is keeping operating costs down and generating enough net profit from sales. Changes in net profit margin enable companies to see whether certain strategies and practices are panning out. Companies can also use their net profit margin to create revenue forecasts and determine how much profit they will likely bring in over time. 

Net profit margin is calculated by dividing your net profit by your gross revenue and multiplying that amount by 100 to get the percentage. 

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.