Net Profit Calculator
Calculate gross, operating, and net profit from revenue and expenses. See all profit margins.
By Konstantin Iakovlev · Updated April 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. With global economic growth projected at 3.5% in 2026, knowing exactly where margin is gained or lost becomes a sharper competitive edge.
The math runs in a cascade. Gross Profit is Revenue minus the Cost of Goods Sold (COGS). Subtract Operating Expenses (OpEx) from that, and you have Operating Profit. Take Interest and Taxes out of Operating Profit, and what remains is Net Profit, the figure that accounts for every direct and indirect cost the business carries.
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: 2026 Tech Startup's Q1 Profitability
- 1 Step 1: Input Q1 2026 Revenue of $750,000, Cost of Goods Sold (COGS) of $280,000, Operating Expenses (including salaries, rent, marketing) of $250,000, Interest Expense of $15,000, and Taxes of $45,000.
- 2 Step 2: Calculate Gross Profit: $750,000 (Revenue) - $280,000 (COGS) = $470,000. Calculate Operating Profit: $470,000 (Gross Profit) - $250,000 (Operating Expenses) = $220,000. Calculate Net Profit: $220,000 (Operating Profit) - $15,000 (Interest) - $45,000 (Taxes) = $160,000.
- 3 Step 3: Intermediate results show a Gross Profit of $470,000 (62.67% gross margin) and an Operating Profit of $220,000 (29.33% operating margin).
- 4 Step 4: The Tech Startup's Net Profit for Q1 2026 is $160,000, resulting in a Net Profit Margin of 21.33%. This indicates a healthy profitability level after all expenses and taxes, reflecting efficient operations and cost management within the quarter.
Source: SBA — Business Guide · Last updated: April 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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