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Business & Accounting

Net Profit Calculator

Walk through an income statement from revenue to net profit, including COGS, operating expenses, other income, interest and income tax.

Your inputs

Results

Net profit

$21,000.00

Net margin
21%
Gross profit
$60,000.00
Operating profit
$30,000.00
Profit before tax
$28,000.00
Income tax
$7,000.00

✓Exact calculation — rounded only for display

What this calculator does

Net profit — the “bottom line” — is what is left after every cost, interest and tax. This tool shows each intermediate subtotal so you can see where profit is lost.

Formula and method

Gross = revenue − COGS; Operating = gross − opex; Pre-tax = operating + other income − interest Tax = max(0, pre-tax) × tax rate; Net = pre-tax − tax

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Revenue: 100000 (any currency)
  • Cost of goods sold: 40000 (any currency)
  • Operating expenses: 30000 (any currency)
  • Other income (negative for other expenses): 0 (any currency)
  • Interest expense: 2000 (any currency)
  • Income tax rate: 25 %

Results

  • Net profit: 21,000
  • Net margin: 21%
  • Gross profit: 60,000
  • Operating profit: 30,000
  • Profit before tax: 28,000
  • Income tax: 7,000

How to read the results

Net margin compares profitability across businesses of different sizes.

Assumptions and limitations

  • Uses a single flat tax rate on positive pre-tax profit; real tax rules are more complex.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Why is there no tax on a loss?

Tax is generally only due on positive taxable profit; loss carry-forward rules are not modelled.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
3 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy