Canonical formula calculator
Net Profit Margin
How much of every dollar you keep after all expenses.
Total sales over the period.
All expenses: COGS, operating, taxes, interest.
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Add context for case suggestions
Optional — helps us match this calculation against relevant case studies (coming soon).
What this tells you
Net profit margin is the percentage of revenue left after every expense — COGS, operating costs, payroll, taxes, interest, everything. It is the all-in profitability number. Where gross margin says "there is room to run a business," net margin says "the business is actually running profitably right now."
When to use it
Use this at the end of every accounting period (monthly, quarterly, annually) to confirm the business is actually profitable. Pair with gross margin to see whether problems live in cost-of-goods (low gross margin) or operating overhead (high gross, low net).
What it doesn’t tell you
Net profit margin is an accounting figure, not a cash figure. A business with a positive net margin can still run out of cash if customers pay slowly or inventory ties up working capital. Pair this metric with burn rate, runway, and cash conversion cycle to see the cash picture — the one that actually determines survival.
Coming soon
Cases, plays, and benchmarks for this metric will appear here as the Moonshot knowledge libraries grow. For now: log in to track your number over time and Moonshot will surface trend warnings when the substrate fills in.