Net Profit Calculator

Build net profit up from revenue by subtracting cost of sales, operating expenses, interest and tax.

About Net Profit Calculator

The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the income statement up from its components makes clear which line is moving it, which a single headline number hides.

Formula

Net Profit

Net Profit = Revenue − Cost of goods sold − Operating expenses − Interest paid − Tax charge

Revenue: Component of the income statement
Cost of goods sold: Component of the income statement
Operating expenses: Component of the income statement
Interest paid: Component of the income statement
Tax charge: Component of the income statement

Worked example

With the default values below, Net Profit Calculator returns Net Profit of 58,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Revenue: 500,000
Cost of goods sold: 300,000
Operating expenses: 120,000
Interest paid: 8,000
Tax charge: 14,000

Results

Net Profit: 58,000.00
Total Positive Components: 500,000.00
Total Deductions: 442,000.00
Result as Share of Positive Components: 11.60%
Verdict: Positive — the components net to a surplus

Step by step

1Values used
2Net Profit
3Net Profit= 58,000.00
4Total Positive Components= 500,000.00
5Total Deductions= 442,000.00
6Result as Share of Positive Components= 11.60
7Verdict= Positive — the components net to a surplus

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Net Profit calculated?

Net Profit = Revenue − Cost of goods sold − Operating expenses − Interest paid − Tax charge The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.

Why does Net Profit matter?

Working the income statement up from its components makes clear which line is moving it, which a single headline number hides.

What values do I need to enter?

This calculator takes 5 inputs: Revenue, Cost of goods sold, Operating expenses, Interest paid, Tax charge. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.