<p>Profit margin is profit after the cost of sales. If you review an income statement, you will see revenue, and then typically a data field called “cost of selling goods”. Revenue - Cost of sales is profit margin. </p>

<p>Net profit margin is Revenue - all expenses. So this includes taxes, interest expense, administrative expenses, and ALL expenses. An easy way to remember this is that profit margin is simply revenue - the cost of selling products, and net profit margin is revenue - ALL costs. </p>

CC BY-SA 3.0
2018-04-26T12:34:37.713Z
2018-04-26T12:34:37.713Z
Simeon Ikudabo
<p>I'm quite confused by these two terms because different websites define them differently.</p>

<reference-request><finance>
Is profit margin the same as net profit margin?
gerald ek
# Is profit margin the same as net profit margin?

(Asked by: username_0 on 2018-04-26)

I'm quite confused by these two terms because different websites define them differently.

**Tags:** reference-request, finance


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## 1 answers

### Answer by username_1 on 2018-04-26. Score: 1

Profit margin is profit after the cost of sales. If you review an income statement, you will see revenue, and then typically a data field called “cost of selling goods”. Revenue - Cost of sales is profit margin.

Net profit margin is Revenue - all expenses. So this includes taxes, interest expense, administrative expenses, and ALL expenses. An easy way to remember this is that profit margin is simply revenue - the cost of selling products, and net profit margin is revenue - ALL costs.


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