Business

Net Profit Calculator

Work out net profit after all expenses, and see it as a percentage of revenue.

Total revenue ($)
Total expenses ($)

—

The result shows the money left after all expenses are paid, and the percentage shows how much of each dollar of revenue is kept as profit.

Formula

Net profit = total revenue minus total expenses. Net margin = net profit divided by total revenue, shown as a percentage.

How it works

Add up everything the business earned, then everything it spent, including rent, salaries, marketing and supplies. The difference is the bottom line for that period. Comparing the margin over months shows whether the business is getting more or less efficient.

Worked example

For example, total revenue of $10,000 minus total expenses of $7,500 gives a net profit of $2,500, which is 25.0% of revenue.

FAQs

Should I include owner drawings?
Owner drawings are not a business expense for this simple calculation, but loan repayments and taxes should be considered separately.

What period should I use?
Any period works as long as revenue and expenses cover the same period, for example one month or one year.

Can net profit be negative?
Yes, that is a net loss. It means expenses were higher than revenue for that period.

Estimates only, not financial advice. Check your figures before making a business decision.