Profit Calculator

Enter your revenue and costs to see gross profit, net profit and both margins in one place.

Revenue

Cost of goods sold (COGS)

Operating expenses

Income tax rate

Currency

Net profit

$9,000.00

Gross profit: $30,000.00
Gross margin: 60%
Net margin: 18%

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How to use the profit calculator

Enter your total revenue for the period, excluding sales tax.
Enter cost of goods sold and your operating expenses such as ads, software, rent and wages.
Add your income tax rate if you want an after-tax figure, or leave it at 0. Results update as you type.

Profit formulas

Gross profit = Revenue − COGS

Operating profit = Gross profit − Operating expenses

Net profit = Operating profit − Tax

Net margin % = Net profit ÷ Revenue × 100

Tax is only applied when operating profit is above zero. Real tax rules are more complex, so treat the after-tax figure as an estimate.

Example

A store makes 50,000 in revenue with 20,000 in cost of goods and 18,000 in operating expenses. Gross profit is 30,000 (60% gross margin). Operating profit is 12,000. At a 25% tax rate, net profit is 9,000, a net margin of 18%.

Gross profit vs net profit

Gross profit shows how much you make on products after their direct cost. Net profit is what is left after every expense and tax. A business can have a healthy gross profit and still lose money if ads, staff or software eat it up.

How to increase profit

Raise prices where customers accept it, cut product and shipping costs, lift average order value, and review recurring expenses every quarter. Small changes in margin often matter more than big jumps in revenue.