Net Profit Calculator

Three profit figures matter and they answer different questions. Gross profit is revenue less the direct cost of what you sold, and it tells you whether your pricing covers your product. Operating profit takes off the cost of running the business, and it tells you whether the business model works. Profit after tax is what is actually left.

Net margin, profit after tax as a percentage of revenue, is the figure to watch over time. A business can grow revenue while its margin falls, which usually means costs are growing faster than price.

This is a working calculation from the figures you enter, not a computation of taxable income. Taxable profit differs because the Act disallows some expenses, allows depreciation on its own basis, and permits set-off of earlier losses.