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take the sell price and deduct the cost price.

divide this number by the sell price and times by 100.

ie; if you buy sell a product for 50 and it costs 30 the profit is 20.

20 divided by 50 = .04 x 100 = 40%

"Net" means that all costs (or expenses) must be considered, including taxes, overhead, etc.

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14y ago

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Q: What formula is used to calculate net profit margin?
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