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Net Profit Calculator
Find your true bottom line. Enter revenue and each layer of cost, then press Calculate to see net profit alongside your gross, operating and net margins.
Written by TopicDrill Editorial Team·Updated June 2026
From revenue to net profit
Each bar is the amount remainingAdvertisement
How the net profit calculator works
The calculator follows the same path an income statement does. It starts with revenue, removes the cost of goods sold to reach gross profit, takes out operating expenses to reach operating profit, subtracts interest to reach pre-tax profit, and finally applies tax to land on net profit. Each step also shows what share of revenue survives.
The waterfall chart makes the erosion visible. The tallest bar is revenue and each following bar is shorter as another layer of cost is removed, so you can see exactly where the money goes and which costs squeeze your margin the most.
A quick example
Take 500,000 dollars of revenue, 200,000 in cost of goods, 150,000 in operating expenses and 20,000 of interest. That leaves 130,000 of pre-tax profit; a 21 percent tax of about 27,300 brings net profit to roughly 102,700 dollars, a net margin near 21 percent of revenue. Trimming operating expenses flows straight through to that bottom line.
Things to keep in mind
Net profit is an accounting figure and can differ from the cash in your bank because of timing, depreciation and credit terms. For how the income statement fits together, see Investopedia on income statements. To judge a one-off project on cash terms instead, try our NPV calculator.
Frequently asked questions
What is net profit?
Net profit is the bottom line of the income statement, the money left after every cost has been paid. It takes revenue and subtracts cost of goods sold, operating expenses, interest and tax, so it shows what the business truly keeps from a period of trading.
How is net profit different from gross profit?
Gross profit is revenue minus only the direct cost of making the goods or services. Net profit goes much further by also removing operating overheads, interest on debt and taxes, so it is always lower than gross profit and reflects the full cost of running the business.
What is a good net profit margin?
It varies widely by industry. Grocery and retail often run on low single-digit margins, while software and consultancy can exceed twenty percent. The most useful comparison is against your own past results and direct competitors rather than a universal benchmark.
How is tax applied in this calculator?
Tax is charged only on a positive pre-tax profit, found after subtracting interest from operating profit. If the business makes a loss before tax, the calculator applies no tax, so the net figure stays equal to the pre-tax loss for that period.
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