Net Profit Calculator — Calculate Net Profit & Net Margin Free

Profit Calculators

Net Profit Calculator
— Full P&L Breakdown

Enter revenue and your costs — COGS is required, operating expenses and tax are optional. Get net profit $, net margin %, and a complete P&L waterfall.

Free forever No signup Full P&L waterfall Industry benchmarks

📉 Net Profit Calculator

Revenue & COGS required — add optional expense sections for a fuller picture

Required

Total Revenue

Total sales for the period

Cost of Goods Sold (COGS)

Direct cost to produce or buy

Operating Expenses

OPTIONAL ▾

Salaries & Wages

Rent & Utilities

Marketing & Advertising

Other Operating Expenses

Interest & Tax

OPTIONAL ▾

Interest Expense

Loan / debt interest

Tax

Income or corporation tax

Your Results —

Net Profit

—

Bottom line

Net Margin

—

% of revenue kept

Gross Profit

—

Before overhead

Total Costs

—

All expenses

Net Profit Margin—

Revenue—

− Cost of Goods Sold—

= Gross Profit—

− Salaries & Wages—

− Rent & Utilities—

− Marketing & Advertising—

− Other Operating Expenses—

− Interest Expense—

− Tax—

= Net Profit—

💡 —

Guide

What Is Net Profit?

Net profit — also called net income or the bottom line — is what remains from your revenue after every single expense has been paid. It includes COGS, operating expenses like rent, salaries and marketing, plus interest on debt and taxes. It is the definitive measure of whether your business is truly profitable.

A company can have strong revenue and healthy gross profit, but still lose money if overhead is too high. Net profit tells the full story.

Net Profit Formula

Net Profit = Revenue − COGS − Operating Expenses − Interest − Tax
Net Margin % = Net Profit ÷ Revenue × 100

Example: $100,000 revenue − $40,000 COGS − $30,000 OpEx − $1,000 interest − $2,500 tax = $26,500 net profit → 26.5% net margin

The P&L Journey: Revenue to Net Profit

Gross Profit = Revenue − COGS. How much you keep before any overhead.
Operating Profit (EBIT) = Gross Profit − Operating Expenses. What operations earn before financing and tax.
Net Profit = Operating Profit − Interest − Tax. The true bottom line.

Industry Data

What Is a Good Net Profit Margin?

Industry	Typical Net Margin	Assessment
Consulting / Freelance	30–50%	Excellent
SaaS / Software	15–30%	Excellent
Amazon FBA	10–25%	Good
Ecommerce (DTC)	10–20%	Good
Retail — Apparel	5–12%	Average
Restaurant (Full Service)	3–9%	Thin
Retail — Electronics	3–8%	Thin
Construction	2–6%	Thin
Grocery / Supermarket	1–3%	Very Thin

Key Difference

Gross Profit vs Net Profit

	Gross Profit	Net Profit
What it subtracts	COGS only	COGS + all expenses + interest + tax
What it measures	Production efficiency	Overall profitability
Typical margin	30–80%	5–30%
Best used for	Pricing, COGS control	Business health, investors

Expert Tips

5 Ways to Improve Net Profit

Start with gross margin. Net margin can never exceed gross margin. Fix pricing and COGS first.
Audit fixed costs annually. Rent, software, salaries creep up silently. A yearly review often reveals 5–10% you can cut.
Refinance debt. A lower interest rate drops straight to the bottom line with no operational change.
Maximise tax deductions. Equipment, home office, depreciation — legitimate deductions increase after-tax net profit.
Track margin by product line. Sub-5% net products drag the whole business down. Identify and reprice or cut them.

FAQ

Net Profit — Frequently Asked Questions

What is the net profit formula?+

Net Profit = Revenue − COGS − Operating Expenses − Interest − Tax. Net Profit Margin % = Net Profit ÷ Revenue × 100. Every cost category must be deducted before you reach the true bottom line.

What is the difference between net profit and gross profit?+

Gross profit subtracts only COGS from revenue. Net profit subtracts every expense — COGS, rent, salaries, marketing, interest, and taxes. Net profit is the true profitability figure; gross profit only measures production efficiency.

What is a good net profit margin?+

10–20% is healthy for most businesses. Above 20% is excellent. Below 5% is risky — any cost increase or revenue dip can push you into a loss. Service businesses typically achieve 30–50% net margin due to minimal COGS.

Can net profit be higher than gross profit?+

No. Net profit is always equal to or lower than gross profit because it involves subtracting additional expenses. If net profit appears higher than gross profit, there is an error in your numbers.

What is the difference between net profit and operating profit?+

Operating profit (EBIT) deducts COGS and operating expenses but excludes interest and taxes. Net profit deducts those too. Operating profit is useful for comparing business performance independently of financing structure and tax regime.

Is net profit the same as net income?+

Yes — "net profit" is more common in the UK and "net income" in the US, but they refer to the same figure: what remains after all expenses are deducted from revenue.

Can net profit be negative?+

Yes. A negative net profit (net loss) means total expenses exceed revenue. It's sometimes planned during a growth phase but must be temporary with a clear path to profitability.

What does net profit tell investors?+

Net profit shows whether a business generates real economic value after all obligations are met. Consistent and growing net profit signals a healthy, scalable business; persistent losses require a credible path to profitability.

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