Worked example
Enter revenue, direct costs, and operating expenses to compare gross profit with net profit and their margins.
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Business performance
Profit Calculator
Calculate gross profit, operating result, net profit, and the margins behind your business performance.
Business inputs
Adjust the values to model your scenario.
Business result
Performance breakdown
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Your breakdown will appear here
Enter your business figures and calculate to view the result.
Formula
How it is calculated
Net Profit = Revenue − Cost of Goods Sold − Operating Expenses + Other Income
Results are estimates based on the figures entered and may exclude taxes, fees, accounting adjustments, or employment rules not shown.
Frequently asked questions
What is gross profit?
Gross profit is revenue minus the direct cost of goods or services sold.
What is net profit?
Net profit subtracts operating expenses and includes other income entered in the calculator.
Why are gross and net margins different?
Gross margin reflects direct production economics, while net margin also reflects operating costs and other income.
Practical guidance
Use the Profit Calculator with confidence
Calculate gross profit, net profit, and margins. Review the example and limitations below before using the result for an important decision.
Assumptions and limits
The estimate excludes accounting adjustments and costs not entered, such as refunds, payment fees, credits, withholding, and jurisdiction-specific rules.
How to read the result
Calculations run from the values you enter using the formula described on this page. Inputs are processed in your browser and results are rounded for display.
Calculation methodology
Read our calculation methodology Educational estimate only. Verify regulated financial, tax, employment, or legal decisions with an official source or qualified professional.