You calculate this break-even figure by dividing your total expenses by the profit you make per piece.

Net profit Finally, net profit indicates the total profit after all the company’s expenses have been deducted from its revenues.

Accounting profit is also known as the net income for a company or the bottom line. Here you will learn what profit is in accounting and how to calculate it.

A negative result represents a net loss, which means total expenses exceeded total revenues for the period. Continuing the example, subtract $750 from $1,000 to get $250 in net profit.

Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted. Investors and businesses can use the net profit margin to assess ...

Summary To recap, the main difference between gross and net profit is that gross profit is the total revenue a company has after subtracting direct production cost, while net profit is the total ...

Profit Margin: How to Calculate It, What It Tells You There are four types of profit margin. Of these, net profit margin is used and referred to the most.

Key Points Learn to calculate total expenses by subtracting net income from total revenue. Net income is found by adjusting owners' equity for profits, losses, and capital changes.

Net Profit Margin = (Net Profit / Revenue) x 100 To calculate the net profit margin, divide the net profit by total revenue and multiply by 100 to express the value as a percentage.

To demonstrate, we can calculate a company's total expenses based on its total revenue from the income statement and its owners' equity from the balance sheet.