Net Profit Calculator
Calculate net profit and margins instantly
What is Net Profit?
Net profit is the amount of money remaining after subtracting all expenses from total revenue. It is the truest measure of a business's profitability and the bottom line number that determines financial health.
Key Terms
The final profit after all costs, including COGS, operating expenses, interest, and taxes, have been subtracted from total revenue.
Revenue minus the cost of goods sold, showing how efficiently you produce or deliver your product before overhead costs.
Gross profit expressed as a percentage of revenue, indicating what portion of each dollar earned is available to cover operating expenses.
Net profit expressed as a percentage of revenue, showing what portion of each dollar earned becomes actual profit after all expenses.
Cost of Goods Sold, the direct costs attributable to producing the goods or services a company sells.
Formulas Used
Subtract direct production costs from revenue to see how much margin your core product generates.
Subtract all remaining business costs from gross profit to arrive at the true bottom-line profit.
Express net profit as a percentage of revenue to easily compare profitability across periods or against industry benchmarks.
Three simple steps
Enter your revenue and costs
Input your total revenue, cost of goods sold, and operating expenses for the period.
Calculate profit and margins
The calculator computes gross profit, net profit, gross margin, and net profit margin.
Review profitability
See a complete profitability breakdown and identify where your costs are eating into margins.
Built for founders like you
Small business owners
Quickly determine whether your business is profitable and by how much after all expenses.
Financial reporting
Calculate accurate profit figures for tax preparation, investor updates, or loan applications.
Pricing decisions
Understand your margin structure to set prices that ensure profitability at every level.
Understanding net profit and margins
Net profit is what remains after subtracting all expenses — cost of goods sold, operating expenses, interest, and taxes — from total revenue. It is the true bottom line of your business and the most complete measure of profitability.
Gross margin (revenue minus COGS divided by revenue) shows how efficiently you produce your product. Net profit margin (net profit divided by revenue) shows how efficiently you run the entire business. Both are important but measure different things.
Healthy margins vary by industry. SaaS companies often target 70-80% gross margins. Retail businesses may operate on 30-50% gross margins. Net margins of 10-20% are considered strong across most industries.
Common questions
What is the net profit formula?+
What is a good net profit margin?+
How is net profit different from gross profit?+
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