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