Net Profit Calculator โ€” Calculate Business Profit Margins

Net Profit Calculator

Calculate your business net profit and profit margins for better financial planning. Determine your actual earnings after accounting for all expenses, taxes, and operating costs.

Step 1: Revenue & Direct Costs

65%

Understanding Gross Profit

Gross Profit = Revenue – Cost of Goods Sold. This represents the profit before operating expenses, taxes, and other costs are deducted.

Step 2: Expenses & Taxes

20%

About Net Profit

Net Profit = Gross Profit – Operating Expenses – Taxes. This is the actual profit your business retains after all expenses are paid, also known as the bottom line.

Profit Calculation Results

Summary
Business Comparison
Breakdown

Your Net Profit

$40,000
Based on $100,000 revenue with 20% tax rate
Gross Profit
$65,000
Gross Margin
65%
Net Profit Margin
40%
Business Type
Sole Proprietor

Business Type Tax Comparison

Business Type Typical Tax Rate Liability Setup Complexity

Profit Breakdown Analysis

Net Profit Calculation Formula

Net Profit = (Revenue – COGS) – Operating Expenses – Taxes

COGS = Cost of Goods Sold. Taxes are calculated on taxable income (Gross Profit – Operating Expenses). Different business structures have different tax implications.

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