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Business Tools

Net Profit Calculator: Revenue Minus Costs and Expenses

Enter revenue, cost of goods sold and operating expenses to see net profit. It shows what is left after the cost of the product and the cost of running the business.

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Your inputs

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Your result

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How to use the Net Profit Calculator

Enter your revenue, the cost of goods sold and your operating expenses for the same period. The result is the profit left over.

Worked example

A shop with $50,000 in sales, $30,000 in stock costs and $12,000 in rent, wages and other expenses makes 50,000 − 30,000 − 12,000 = $8,000 net profit. That is a net margin of 16%. Its gross profit, before operating expenses, is $20,000 or 40%.

Gross profit versus net profit

Gross profit shows whether your products are priced well. Net profit shows whether the whole business is. A company can have healthy gross margins and still lose money if overheads are too high. Track both, and compare them over several months rather than judging a single one.

The formula

Net profit = revenue − cost of goods sold − operating expenses

Examples

  • Revenue 10,000, COGS 6,000, expenses 1,200
    Net profit: 2,800
  • Revenue 250,000, COGS 140,000, expenses 68,000
    Net profit: 42,000
  • A loss: revenue 18,000, COGS 11,000, expenses 9,500
    Net profit: -2,500

Limitations and assumptions

Only includes the costs you enter. Add interest, taxes and one-off costs to expenses if you want the full bottom line.

Frequently asked questions

How do I calculate net profit?

Revenue − cost of goods sold − operating expenses.

Does it include tax and interest?

No, this version stops at operating profit. Subtract tax and interest separately.

Net profit or gross profit?

Gross profit ignores operating expenses.

Can it be negative?

Yes, that is a net loss.