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Net Profit Calculator
Net Profit Pro Elite
Complete bottom-line analysis after taxes and operating expenses
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$
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Net Profit After Tax
$0.00
0.00% Net Margin
Pre-Tax Income
$0.00
Tax Liability
$0.00
Expense Ratio
0.00%
About the Net Profit Calculator
Work out the bottom line: what a business keeps after expenses and tax.
How to use the Net Profit Calculator
- Enter your Gross Revenue and Total Expenses.
- Enter the Effective Tax Rate (%).
- Press Calculate Bottom Line.
Formula and method
Profit before tax = Revenue β Expenses, Net profit = Profit before tax Γ (1 β Tax rate), Net margin = Net profit Γ· Revenue Γ 100.
Worked example
$100,000 revenue with $70,000 expenses leaves $30,000 before tax. At a 25% tax rate the net profit is $22,500, a 22.5% net margin.
When to use the Net Profit Calculator
- Finding out what a business really keeps after all its costs.
- Checking the profitability of a small business or a side project.
- Preparing accounts and tax estimates.
Common mistakes to avoid
- Leaving out costs such as depreciation, interest and tax.
- Mixing cash received with revenue earned.
Tips
- Include every expense: salaries, rent, software, interest and depreciation.
- Track net margin over time to spot rising costs.
Frequently Asked Questions
No. Profit is an accounting figure. Cash flow tracks the actual money moving in and out.
Net profit divided by revenue, as a percentage. It shows how much of each dollar of sales is kept as profit.