What's a good net margin?

It varies hugely by sector — low for high-volume trade, higher for services. Track the trend more than the absolute number.

No — it's a free illustration. Your actual Creditcorp offer depends on an assessment of your company.

Net profit margin calculator — Calculators

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Net profit margin calculator results are illustrative and not a quote or credit decision.

How to interpret the result

The output on its own is only meaningful alongside context. A limited company reviewing its net margin should look at the direction of travel over several periods rather than treating a single calculation as a verdict — a margin that is stable or improving tends to say more about the health of the business than where it sits relative to a generic benchmark.

It also helps to look at net margin alongside gross margin: if gross margin is healthy but net margin is thin, the gap usually points to overheads, finance costs or one-off items sitting below the gross profit line, which is a different problem to solve than a pricing or cost-of-sales issue.

Limitations and good practice

This calculator works from whatever revenue and profit figures are entered, so the result is only as reliable as those inputs. Seasonal businesses, companies mid-way through a big investment, or those with unusual one-off costs in the period should treat a single month or quarter's figure with caution, and ideally compare it against a full trading year.

It is good practice to recalculate regularly rather than once, and to keep the underlying figures consistent with management accounts so the trend line is genuinely comparable period to period. As the page itself notes, this tool produces an illustration, not an assessment of the company — any lending decision would look considerably deeper than a single ratio.