Net Profit Calculator
Calculate bottom-line net profit, operating profit (EBIT), and net margin percentage after deducting COGS, operating overhead (SG&A), interest, and taxes.
Multi-Tier Expense Streams
Net Income / Net Profit Formula
Net Profit = Revenue - (COGS + Operating SG&A + Interest + Taxes); Net Margin % = (Net Profit / Revenue) × 100- Operating SG&A: Selling, general, and administrative operating expenses.
- EBIT: Operating profit before non-operating debt interest and income tax provisions.
Step-by-Step Worked Example
Calculation Steps:
- Gross Profit = $500,000 - $200,000 = $300,000
- Operating Profit (EBIT) = $300,000 - $180,000 = $120,000
- Net Profit = $120,000 - $15,000 - $25,000 = $80,000
- Net Profit Margin = ($80,000 / $500,000) × 100 = 16.0%
How to Use This Calculator
- 1Enter total business revenue.
- 2Input direct Cost of Goods Sold and operating SG&A overhead.
- 3Add interest on business loans and local/federal income taxes.
Assumptions & Limitations
- All revenues and expenses are aligned over the same fiscal period.
Frequently Asked Questions
Why is net profit called the "bottom line"?
On a traditional multi-step income statement, revenue appears at the very top ("top line") and net profit appears at the final concluding line at the bottom ("bottom line").
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