Net Profit Calculator
Calculate gross, operating, and net profit from revenue and expenses. See all profit margins.
By Konstantin Iakovlev · Updated September 2026 · Source: SBA — Business Guide
Gross Profit
$650,000.00
65.0% margin
Operating Profit
$350,000.00
35.0% margin
Net Profit
$250,000.00
25.0% margin
Income Statement
| Revenue | $1,000,000.00 |
| Cost of Goods Sold | - $350,000.00 |
| Gross Profit | $650,000.00 |
| Operating Expenses | - $250,000.00 |
| Depreciation | - $50,000.00 |
| Operating Profit (EBIT) | $350,000.00 |
| Interest Expense | - $25,000.00 |
| Pre-Tax Profit | $325,000.00 |
| Taxes | - $75,000.00 |
| Net Profit | $250,000.00 |
Profit Margins
| Gross Margin | 65.0% |
| Operating Margin | 35.0% |
| EBITDA | $400,000.00 |
| EBITDA Margin | 40.0% |
| Net Margin | 25.0% |
Use the Net Profit Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Profit comes in layers, and separating them tells you far more about a business than a single bottom-line number ever could. This tool breaks revenue down into gross, operating, and net profit so you can read operational efficiency at each stage.
The math runs in a cascade. Gross Profit is Revenue minus the Cost of Goods Sold (COGS). Subtract Operating Expenses (OpEx) and Depreciation from that, and you have Operating Profit (EBIT); adding depreciation back gives EBITDA, which the tool also shows. Take Interest out of Operating Profit to get Pre-Tax Profit, then Taxes, and what remains is Net Profit, the figure that accounts for every direct and indirect cost the business carries. Each profit line is also shown as a margin on revenue.
How you categorize expenses determines whether these numbers mean anything. Folding COGS into operating expenses is a frequent error that quietly inflates your gross margin and misleads every ratio built on it. Non-operating items such as one-time asset sales or extraordinary losses sit outside operating profit but still belong in net profit, so place them carefully.
Example: Tech Startup's Quarterly Profitability
- 1 Input: quarterly Revenue of $750,000, Cost of Goods Sold (COGS) of $280,000, Operating Expenses (salaries, rent, marketing) of $220,000, Depreciation of $30,000, Interest Expense of $15,000 and Taxes of $45,000.
- 2 Gross Profit: $750,000 − $280,000 = $470,000, a 62.7% gross margin. Operating Profit (EBIT): $470,000 − $220,000 − $30,000 = $220,000, a 29.3% operating margin. EBITDA: $220,000 + $30,000 = $250,000, a 33.3% margin.
- 3 Pre-Tax Profit: $220,000 − $15,000 = $205,000. Net Profit: $205,000 − $45,000 = $160,000, a 21.3% net margin ($160,000 / $750,000).
- 4 Of each revenue dollar, about 37 cents goes to COGS, 33 cents to operating expenses and depreciation, and 8 cents to interest and taxes, leaving about 21 cents of profit.
Source: SBA — Business Guide · Last updated: September 2026
Frequently Asked Questions
What is the difference between gross profit and net profit?
What is a good net profit margin?
How do I calculate net profit margin?
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