Build net profit up from revenue by subtracting cost of sales, operating expenses, interest and tax.
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.
Net Profit
Net Profit = Revenue − Cost of goods sold − Operating expenses − Interest paid − Tax charge
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.
Working the income statement up from its components makes clear which line is moving it, which a single headline number hides.
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.