Business2026/27
Net Profit Calculator
Calculate your net profit, operating profit, and profit margins after all expenses and taxes.
Enter Your Figures
Input revenue and all expense categories
Rent, salaries, utilities, marketing, etc.
Interest income, asset sales, etc.
Profit Analysis
Net Profit
£25,000
Net Margin: 25.0%
Gross Profit
£60,000
60.0% margin
Operating Profit
£35,000
35.0% margin
Revenue£100,000
Less: COGS-£40,000
Gross Profit£60,000
Less: Operating Expenses-£25,000
Operating Profit (EBIT)£35,000
Less: Interest-£2,000
Less: Taxes-£8,000
Net Profit£25,000
Understanding Net Profit
What is Net Profit?
Net profit (also called net income or the bottom line) is the amount of money your business earns after deducting all expenses, including COGS, operating expenses, interest, and taxes. It represents the true profitability of your business.
Profit Types Explained
- Gross Profit: Revenue minus cost of goods sold
- Operating Profit (EBIT): Gross profit minus operating expenses
- EBT (Earnings Before Tax): EBIT minus interest expenses
- Net Profit: EBT minus taxes
Improving Net Profit
- Increase prices or sales volume
- Reduce cost of goods sold through better supplier negotiations
- Cut unnecessary operating expenses
- Optimise tax efficiency (R&D relief, capital allowances)
- Refinance debt for lower interest rates