Net Margin is your Gross Profit less costs you’d have to pay whether you sold anything or not – aka “Fixed Costs”. Office labor, rent, utilities, insurances, preperty taxes, marketing, vehicles, equipment, etc.
If you are the owner and you work at the company, pay yourself what you’d have to pay someone else to do what you do. Your salary is a fixed cost.
Net profit is any dollars left over after everything is paid. (You can pay this money out to yourself later as a “Distribution to shareholder”.) Net margin is the percentage that the net profit is of the total sales.
What was your net margin last month?
How does this compare to your net margin last year?