Net Profit Calculator

The net profit calculator works out your bottom line, the money left over once every expense has been taken out of your revenue. You enter your total revenue and your total expenses for the period, and the tool returns your net profit in dollars along with your net profit margin as a percentage. Total expenses should capture everything it costs to run the business, including the cost of goods sold, wages, rent, power, marketing, insurance, interest, depreciation, and any tax you want to account for. Net profit is the figure that ultimately tells you whether the business is making money, so it is the number owners, investors, and lenders look at most closely. A New Zealand small business owner, contractor, or company director can use it to check that sales are doing more than just covering costs and to compare one period against another. To get an accurate result, make sure revenue and expenses cover the same time frame and that no costs are left out, because missing expenses make profit look better than it really is. Compare your net profit and margin across several periods so you can see the trend rather than reacting to one month. If profit is thin or negative, work back through the expense list to find what is eating the margin, and check whether prices have kept up with rising costs. A healthy net profit gives you room to reinvest, pay down debt, and build a buffer. All figures are in New Zealand dollars and the result is an estimate to support decisions, not a replacement for advice from your accountant.

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$80,000
Net profit
Net profit margin16.0%

Net profit = revenue - total expenses. Net margin = net profit / revenue. Estimate only, not financial or tax advice.

How it works

Net profit is your revenue minus all expenses for the period. Net margin is that net profit divided by revenue, shown as a percentage. The defaults use $500,000 of revenue and $420,000 of expenses.

Worked example

With revenue of $500,000 and total expenses of $420,000, net profit is $80,000. Dividing $80,000 by $500,000 gives 0.16, which is a 16.0 percent net margin.

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Frequently asked questions

What is the difference between net profit and gross profit?

Gross profit only subtracts the direct cost of goods sold from revenue. Net profit subtracts all expenses, including overheads, interest, and tax. Net profit is your true bottom line.

Should expenses include tax?

That is up to you. If you want net profit after tax, include your income tax in total expenses. If you want profit before tax, leave tax out and treat the result as pre-tax profit.

Why is my net profit negative?

A negative net profit means expenses are higher than revenue, so the business made a loss for the period. Review your expense list, look for rising costs, and check whether your prices and sales volume are high enough.