Enter the total net income ($) and the total revenue ($) into the Net Income Margin Calculator. The calculator will evaluate and display the Net Income Margin.
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Net Income Margin Formula
The following formula is used to calculate the Net Income Margin.
NIM = NI / TR * 100
- Where NIM is the Net Income Margin (%)
- NI is the total net income ($)
- TR is the total revenue ($)
How to Calculate Net Income Margin?
The following example problems outline how to calculate Net Income Margin.
Example Problem #1:
- First, determine the total net income ($).
- The total net income ($) is given as: 40.
- Next, determine the total revenue ($).
- The total revenue ($) is provided as: 200.
- Finally, calculate the Net Income Margin using the equation above:
NIM = NI / TR * 100
The values given above are inserted into the equation below and the solution is calculated:
NIM = 40 / 200 * 100 = 20.00 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total net income ($) = 60
total revenue ($) = 500
Test your knowledge using the equation and check your answer with the calculator above.
NIM = NI / TR * 100 = ?
