Net Profit Calculator
Calculate net profit and net margin by subtracting all expenses from revenue — COGS, operating costs, taxes, and more.
Net Profit
—
Revenue
—
Gross Profit
—
Gross Margin
—
Total Expenses
—
Net Margin
—
How to Use the Net Profit Calculator
- Enter total revenue: Your total sales or income.
- Enter COGS: Direct costs of producing goods or services.
- Enter operating expenses: Rent, salaries, utilities, marketing, etc.
- Optionally add: Interest, taxes, and other expenses for a complete picture.
- View your results: Net profit, net margin, and expense breakdown appear instantly.
Net Profit Formula
Net profit is calculated as:
Net Profit = Revenue - COGS - Operating Expenses - Interest - Taxes - Other
Net profit margin:
Net Margin (%) = (Net Profit / Revenue) × 100
Net Profit Examples
| Revenue | Total Expenses | Net Profit | Net Margin |
|---|---|---|---|
| $200,000 | $160,000 | $40,000 | 20% |
| $500,000 | $425,000 | $75,000 | 15% |
| $100,000 | $90,000 | $10,000 | 10% |
| $1,000,000 | $850,000 | $150,000 | 15% |
| $75,000 | $80,000 | -$5,000 | -6.7% |
Frequently Asked Questions
What is a good net profit margin?
Net profit margins vary widely. A 10% net margin is generally considered good, 20% is strong, and 5% is considered low but acceptable in some industries. Retail averages 2-5%, technology 15-25%, and financial services 15-30%.
What is the difference between gross and net profit?
Gross profit only subtracts direct costs (COGS) from revenue. Net profit subtracts all costs including COGS, operating expenses, interest, taxes, and other expenses. Net profit is the "bottom line" of the income statement.
How can I improve net profit?
Improve net profit by increasing revenue (raise prices, sell more), reducing COGS (negotiate with suppliers, improve efficiency), lowering operating costs (reduce overhead, automate processes), and optimizing tax strategy.