# Net margin

> Net margin is a profitability metric, calculated as Net income ÷ Revenue.

Source: https://lopifi.com/glossary/net-margin
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is net margin?** Net margin is a profitability metric, calculated as Net income ÷ Revenue.

## Formula

`Net income ÷ Revenue`

- **Category:** Profitability
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** net-income, revenue