Enter Your Numbers
Revenue Total sales
$
Cost of Goods Sold Direct costs
$
Operating Expenses Rent, salaries, marketing
$
Tax Rate Business income tax
%
Net Profit
$52,500
Net Margin: 21.00%
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Key Metrics
Gross Profit
$150K
60.0%
Operating Profit
$70K
28.0%
Net Profit
$52.5K
21.0%
Tax Owed
$17.5K
Cost Ratio
40.0%
OpEx Ratio
32.0%
Full P&L Breakdown
| Revenue | $250,000 |
| COGS | -$100,000 |
| Gross Profit | $150,000 |
| Operating Expenses | -$80,000 |
| Operating Profit (EBIT) | $70,000 |
| Tax (25%) | -$17,500 |
| Net Profit | $52,500 |
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Revenue Breakdown
Margin Comparison
Frequently Asked Questions
What is net profit?
Net profit is the money left after subtracting ALL costs from revenue — including COGS, operating expenses, taxes, interest, and depreciation. It's your true bottom line and what actually goes into your pocket (or gets reinvested).
What is a good net profit margin?
It varies by industry. A 5% net margin is considered low, 10% is average, and 20%+ is excellent. Software companies can achieve 25-35%, while retail typically runs at 1-5%. The key is being above your industry average.
What is the difference between gross, operating, and net profit?
Gross profit = Revenue - COGS (only direct costs). Operating profit = Gross profit - Operating expenses (adds rent, salaries, etc.). Net profit = Operating profit - Taxes (the final number). Each level adds more expenses.
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