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Net Profit Calculator

Calculate net profit after subtracting all expenses from revenue.

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Formula

Net Profit = Revenue - COGS - Operating Expenses - Taxes

Subtract all costs from revenue: COGS, operating expenses, interest, and taxes.

Worked Example

Revenue: $200,000, COGS: $120,000, Expenses: $50,000, Taxes: $7,500 Step 1: Gross Profit = 200,000 - 120,000 = $80,000 Step 2: Operating Income = 80,000 - 50,000 = $30,000 Step 3: Net Profit = 30,000 - 7,500 = $22,500 Step 4: Net Margin = 22,500 / 200,000 = 11.25% Result: $22,500 net profit (11.25% margin)

What Is Net Profit?

Net profit, also called net income or the bottom line, is the amount of money remaining after all expenses have been deducted from total revenue. This includes cost of goods sold, operating expenses, interest, taxes, and any other costs. Net profit is the truest measure of a company's profitability.
  • Net Profit = Revenue - COGS - Operating Expenses - Interest - Taxes
  • Net Profit Margin = (Net Profit / Revenue) x 100
  • Average net profit margins: retail 2-5%, software 15-25%, services 10-20%
  • A company can have high gross profit but low net profit if operating expenses are too high

Net profit is the number that matters most to business owners and investors. It tells you exactly how much money the business keeps after every bill is paid.

You can also calculate changes using our Gross Profit Calculator, Profit Margin Calculator or Break-Even Calculator.

Frequently Asked Questions

What is a healthy net profit margin?

Varies widely: 10-20% is good for most industries. Tech companies may reach 25%+.

What is the bottom line?

Net profit is often called the "bottom line" because it appears at the bottom of the income statement.

How can I improve net profit?

Increase revenue, reduce COGS, cut operating expenses, or optimize tax strategy.

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Gross Profit CalculatorProfit Margin CalculatorBreak-Even Calculator

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