Profit Calculator
Calculate gross, operating and net profit from revenue and costs.
What the Profit Calculator does
Profit is measured at several levels. Gross profit covers direct production costs only. Operating profit subtracts running the business. Net profit is what remains after interest and tax — the figure that actually belongs to owners.
Formula
Gross profit = Revenue − Cost of goods soldOperating profit = Gross profit − Operating expensesNet profit = Operating profit − Interest − Tax
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Revenue | selected currency | Yes | Accepts more than 0. |
| Cost of goods sold | selected currency | Optional | Direct costs of producing what you sold. Accepts 0 or more. |
| Operating expenses | selected currency | Optional | Salaries, rent, marketing, software. Accepts 0 or more. |
| Interest expense | selected currency | Optional | Accepts 0 or more. |
| Tax | selected currency | Optional | Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Revenue.
- Optionally add Cost of goods sold, Operating expenses and Interest expense.
- Select Calculate.
Worked example
$500,000 revenue, $200,000 COGS, $180,000 operating expenses, $15,000 interest, $25,000 tax.
- Revenue
- 500000
- COGS
- 200000
- Opex
- 180000
- Interest
- 15000
- Tax
- 25000
Gross $300,000 (60%), operating $120,000 (24%), net $80,000 — a 16% net margin.
Frequently asked questions
Which profit figure matters most?
Gross margin shows whether the product itself works. Operating margin shows whether the business works. Net margin shows what owners keep. Track all three.
Is profit the same as cash flow?
No. Profit is an accounting measure that includes non-cash items and unpaid invoices. A profitable business can still run out of cash.