← Glossary Business glossary
What is Net margin?
The percentage of revenue left after every cost, including overheads and fees.
Net margin is what actually lands in your pocket. It is revenue minus all costs (cost of goods, fees, software, your time, tax), divided by revenue.
A business can have a strong gross margin and a thin net margin once fees, shipping and overheads are counted. Always know both numbers, because net margin is the one that keeps you in business.
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