Net Profit Calculator
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How to use the tool
- Gross Profit – type the revenue left after cost of goods sold. Example 1: $60,000; Example 2: $40,000.
- Operating Expenses – enter rent, payroll, utilities, etc. Example 1: $22,500; Example 2: $15,000.
- Taxes – add federal, state and local tax totals. Example 1: $5,000; Example 2: $3,000.
- Interest – include loan or credit-line interest. Example 1: $2,000; Example 2: $800.
- Press “Calculate” to view net profit instantly.
Formula
$$\text{Net Profit}= \text{Gross Profit} – \text{Operating Expenses} – \text{Taxes} – \text{Interest}$$
Example calculation
- Input: 60 000 – 22 500 – 5 000 – 2 000
- Result: 30 500 USD
Quick-Facts
- Median small-business net profit margin: 7 % (SBA “Small Business Finance Guide”, 2023).
- U.S. federal corporate tax rate: 21 % (IRS “Form 1120 Instructions”, 2023).
- Average interest expense equals 2 % of sales for U.S. firms (NYU Stern Data Set, 2023).
- Healthy manufacturing gross margin target: 25–35 % (Investopedia “Gross Margin Definition”, 2024).
FAQ
What is net profit?
Net profit is the money you keep after subtracting operating expenses, taxes and interest from gross profit. “Net profit is the residual amount after deducting expenses, taxes, and finance cost from revenue” (IFRS Conceptual Framework §A4, 2020).
How does the calculator work?
You enter four numbers; the script applies the formula above and outputs the result to two decimal places. No data leaves your browser—processing is local.
Why track net profit regularly?
Regular tracking shows whether your core operations create value and reveals overspending early (Harvard Business Review, 2022).
Which costs belong in operating expenses?
Include wages, rent, utilities, marketing, maintenance and insurance—everything required to run daily operations (GAAP Codification 720-10, 2021).
How can you boost net profit?
Raise prices, cut low-ROI expenses, negotiate better supplier terms, and refinance high-interest debt (McKinsey “Margin Excellence”, 2023).
Is net profit the same as cash flow?
No. Net profit follows accrual rules; cash flow adjusts for non-cash items like depreciation (SEC “Beginners Guide to Cash Flow”, 2023).
What is a good net profit margin?
Service firms aim for 10–20 %; retailers 2–5 %; manufacturing 5–10 % (Deloitte Industry Outlook, 2023).
How often should you calculate net profit?
Monthly for most small businesses; weekly during growth spurts or cash-tight periods (SCORE “Financial Management Tips”, 2022).
Important Disclaimer
The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
