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Net Profit Calculator

Calculate net profit after subtracting all expenses from revenue.

Enter Values

Revenue

COGS

Operating Expenses

Taxes

Result

Enter values above and click Calculate to see your result.

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Formula

Core Formula

\text{Net Profit} = \text{Revenue} - \text{COGS} - \text{OpEx} - \text{Taxes}

How it works: 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

1Step 1: Gross Profit = 200,000 - 120,000 = $80,000

2Step 2: Operating Income = 80,000 - 50,000 = $30,000

3Step 3: Net Profit = 30,000 - 7,500 = $22,500

4Step 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.

How do I add this Net Profit Calculator to my site?

Absolutely. Use the "Embed" option above to tailor the dimensions, color scheme, and styling to match your site. Copy the generated iframe snippet and drop it into your HTML, WordPress editor, or any CMS. There is no cost and no account required. See calculory.com/services/embed-calculators for a step-by-step walkthrough.

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I can help you understand the net profit calculator formula, interpret your results, and answer follow-up questions.

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