Net Profit Calculator
Revenue minus every cost — the real bottom line.
Net profit is what remains after every cost has been paid: the direct cost of what you sold, your operating overhead, interest on borrowing, and income tax. It is the figure that determines what you can pay yourself, reinvest, or bank, and it is the line lenders and buyers look at first.
Gross profit can look excellent while net profit is negative. Rent, wages, software, insurance, professional fees, and marketing all sit between the two, and in service businesses those costs often exceed the direct cost of delivery. Working only from gross margin is how profitable-looking businesses run out of cash.
Enter your revenue, cost of goods sold, operating expenses, interest, and tax rate for the same period. The calculator returns gross profit, operating profit, pre-tax profit, and net profit, along with your net margin — so you can see exactly which line is eating the money.
Your numbers
Net profit
$66,360.00
🇺🇸 US · USD
- Gross profit
- $240,000.00
- Operating profit
- $90,000.00
- Pre-tax profit
- $84,000.00
- Income tax
- $17,640.00
- Net profit margin
- 14.75%
Estimates only. Results from this calculator are for general informational purposes and are not tax, legal, accounting or financial advice. Rates change and individual circumstances vary — confirm figures with the CRA, the IRS, your state or provincial authority, or a licensed professional before acting on them.
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How it's calculated
- Gross profit = Revenue − Cost of goods sold
- Operating profit = Gross profit − Operating expenses
- Pre-tax profit = Operating profit − Interest & other costs
- Net profit = Pre-tax profit − Income tax
Understand the numbers
Frequently asked questions
- What is a healthy net margin?
- Across small business generally 5–15%. Professional services can exceed 20%; grocery and construction often sit under 5%.
- Where does owner pay go?
- If you are on payroll, your wages belong in operating expenses. Owner draws from profit come after net profit.
- Should sales tax be in revenue?
- No. GST/HST and US sales tax are collected on behalf of the government and are not your revenue.
- What tax rate should I use?
- US federal corporate tax is 21% plus state tax. Canadian CCPCs pay roughly 9% federal small business rate plus a provincial rate. Sole proprietors should use their personal marginal rate.
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