Profit Calculator
Gross, operating and net profit from revenue and costs.
Gross profit$75,000.00
Operating profit$37,000.00
Net margin24.36%
Net profit
$29,230.00
Revenue is not profit. This calculator walks down a simple income statement: subtract the direct cost of what you sold, then operating expenses, then income tax.
Use it to sanity-check pricing or to estimate how a new contract would affect your bottom line.
Formula
Gross profit = Revenue − COGSOperating profit = Gross profit − Operating expensesNet profit = Operating profit × (1 − Tax rate)Net margin = Net profit ÷ Revenue × 100
Example
$120,000 revenue − $45,000 COGS − $38,000 expenses = $37,000 operating profit. After 21% tax, net profit is $29,230 (24.36% margin).
Frequently asked questions
What counts as cost of goods sold?
Direct costs of producing what you sell — materials, direct labor and subcontractors. Rent and marketing are operating expenses.
Why is net profit lower than gross profit?
Net profit also deducts overhead and taxes.
Is this accounting advice?
No — it is a quick estimate. Your accountant can prepare accurate financial statements.