Net Profit
Net Profit Calculator
Calculate the bottom-line profit after all expenses: COGS, operating costs, interest, and tax.
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Net Profit
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After all costs & tax
Net Profit Margin
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% of revenue
Gross Profit
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Before operating costs
Pre-Tax Profit
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Earnings before tax
Net Profit Formula
Net Profit = Revenue − COGS − Operating Expenses − Interest − Tax
Net Profit Margin (%) = (Net Profit ÷ Revenue) × 100
Net Profit Margin (%) = (Net Profit ÷ Revenue) × 100
Net profit is the true bottom line — what's left after every cost has been paid. It appears as the final line on an income statement, which is why it's also called “the bottom line.”
From Gross to Net
- Gross Profit = Revenue − COGS
- Operating Profit (EBIT) = Gross Profit − Operating Expenses
- Pre-Tax Profit (EBT) = EBIT − Interest
- Net Profit = EBT − Tax
Common Questions
Can a business have positive gross profit but negative net profit?
Yes, and it's common in early-stage companies. A startup might have healthy gross margins but spend heavily on sales, marketing, and R&D, resulting in a net loss. This is sometimes intentional and sustainable if growth is rapid.
What is a good net profit margin?
5% is generally considered average, 10% is good, 20% is excellent. But again, industry context matters enormously. A 3% net margin is outstanding for grocery; it's dismal for software.