Operating Profit
Free Operating Profit calculator with clear step-by-step results.
About Operating Profit
Operating profit is earnings from core operations before interest and tax.
Formula
Formula
Operating profit = revenue − COGS − operating expenses
Worked example
With the default values below, Operating Profit returns Operating Profit of $60,000.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Revenueminimum 0 $
- 300,000 $
- Cost of goods soldminimum 0 $
- 180,000 $
- Operating expensesminimum 0 $
- 60,000 $
Results
- Gross Profit
- $120,000.00
- Operating Profit
- $60,000.00
- Operating Margin
- 20.0%
Step by step
- 1Values used
- 2Formula
- 3Operating Profit= $60,000
- 4Gross Profit= $120,000
- 5Operating Margin= 20.0
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 1 decimal place, 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 does this calculator work?
Operating profit is earnings from core operations before interest and tax.
Why does this matter?
Excludes financing and tax effects.