Net profit margin

Net profit margin is the share of your total revenue you actually keep after every cost — including salaries.

Formula

Net margin = (total revenue − all costs) ÷ total revenue × 100

Worked example

A resort takes ₱19,971,823 over a year, spends ₱9,083,000 on expenses and ₱5,040,000 on payroll.
₱19,971,823 − ₱14,123,000 = ₱5,848,823 net profit.
₱5,848,823 ÷ ₱19,971,823 × 100 = 29.3% net margin.

Why it matters

A well-run small Philippine property lands somewhere in the 20–30% range. Much above that usually means a cost is missing from the calculation rather than a triumph — most often the owner's own unpaid labour, or payroll left out entirely.

It is the only figure that tells you whether the business works, as opposed to whether it is busy.

Compare it across a full year, not a month. A Philippine property's costs are far flatter than its revenue — payroll and permits do not fall in the habagat months — so a single low month can show a negative margin in an entirely healthy business.

In MangoHost

Expenses and payroll are subtracted automatically, so the margin on your analytics screen is the real one rather than something reconstructed at month-end.

Expenses & payroll →

Related terms

GOPPAR (gross operating profit per available room)GOPPAR is your gross operating profit divided by available room-nights — what each room earned after the costs of running the place.
Cost per occupied room (CPOR)CPOR is what it costs you to service one sold room-night — housekeeping labour, linen, amenities, utilities.
Payroll cost ratioPayroll cost ratio is your total staff cost as a percentage of revenue — usually the largest single cost a small hotel has.

MangoHost gives Philippine properties these numbers without a month-end spreadsheet. Book a 30-minute walkthrough and see them on your own rooms.