Net profit and gross profit calculator
A short income statement: enter revenue, cost of sales, expenses, interest and tax rate to reach net profit step by step.
Loading the tool…
Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter revenue, cost of goods sold, operating expenses, interest expense and income tax rate.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Gross profit = revenue − cost of sales. Operating profit = gross profit − operating expenses. Pre-tax profit = operating profit − interest. Tax = pre-tax profit × rate (zero on a loss). Net profit = pre-tax profit − tax.
Example
Inputs: Revenue = 500,000, Cost of goods sold = 300,000, Operating expenses = 100,000, Interest expense = 10,000, Income tax rate = 20 %. Result: Net profit: 72,000.00; Net profit margin: 14.4%; Gross profit: 200,000.00.
Limits and caveats
- The tax rate is an assumption you set; it differs by country and activity, and zakat uses a different base.
- Does not carry forward past losses or add other income.
Questions about this tool
What is the difference between gross and net profit?
Gross profit only subtracts cost of sales; net profit subtracts everything: expenses, interest and tax.
Why is tax zero on a loss?
No income tax is due on a loss in the same year, so the calculator sets tax to zero.
What goes into operating expenses?
Overhead salaries, rent, marketing, admin and depreciation, meaning everything outside cost of sales.