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Net Profit Calculator

Calculate your bottom-line profit after all expenses, including COGS, operating costs, and taxes.

Written by CalcVault Editorial Team
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Fill in the fields above and click Calculate to see your results.

How to use

Enter total revenue for the period, cost of goods sold, operating expenses (rent, payroll, utilities, marketing, software), and taxes plus interest. The calculator returns net profit — your true bottom line — and net margin as a percentage of revenue.

Use the same period for every input, and be honest about operating expenses: owner salary, depreciation, and small subscriptions are the items most often forgotten, and leaving them out flatters the result. Track net margin monthly and watch the trend rather than a single month — a business can look profitable in peak season and still lose money across the year.

How it's calculated

Net Profit

revenue - cogs - operating_expenses - taxes

Profit after all costs and taxes

Net Margin (%)

((revenue - cogs - operating_expenses - taxes) / revenue) * 100

Percentage of revenue that is actual profit

Examples

Small business, annual result

  • Cost of Goods Sold (COGS):600,000,000
  • Taxes & Interest:120,000,000
  • Total Revenue:1,200,000,000
  • Operating Expenses:300,000,000

Result

  • Net Profit:180,000,000
  • Net Margin (%):15

From 1.2B₫ of revenue, half goes to goods, 300M₫ to operations, and 120M₫ to taxes and interest — leaving 180M₫, a 15% net margin. That is comfortably above the 10% "solid" threshold for a small business.

Cafe, one month

  • Cost of Goods Sold (COGS):60,000,000
  • Taxes & Interest:5,000,000
  • Total Revenue:150,000,000
  • Operating Expenses:70,000,000

Result

  • Net Profit:15,000,000
  • Net Margin (%):10

A 40% COGS is fine for F&B, but 70M₫ of rent and payroll squeezes the bottom line to 15M₫ — a 10% margin, decent for a cafe where 3–9% is typical. Note the leverage: a 5% rent increase would cut profit far more than 5%.

Industry Benchmarks

Metric Typical Range
Net margin norms: restaurants 3–9%, retail 2–5%, construction 4–8%, services 10–20%, software 15–25%. 10% overall is solid, 20% excellent. 5–20 %

Data source: NYU Stern Margin by Sector (2025)

Frequently Asked Questions

What is net profit?

Net profit is what remains of revenue after every cost: goods, operations, interest, and taxes. It is the money that can actually be reinvested or paid out to owners, which is why it is called the bottom line — it sits at the bottom of the income statement.

How is net profit different from gross profit?

Gross profit only subtracts the direct cost of goods sold and shows whether your pricing covers the product. Net profit additionally subtracts rent, payroll, marketing, interest, and taxes — showing whether the business as a whole makes money. A healthy gross margin with negative net profit means overhead is too heavy.

What is a good net profit margin for a small business?

Across industries, 10% is generally considered solid and 20% excellent. But norms differ widely: restaurants typically earn 3–9%, retail 2–5%, and service businesses 10–20%. Compare against your industry, and against your own trend over recent months.

My net profit is positive but I have no cash. Why?

Profit and cash flow are different. Money can be locked in unpaid customer invoices or inventory, loan principal repayments do not appear as expenses, and equipment bought upfront is expensed gradually as depreciation. A profitable business can still run out of cash — track both.
CalcVault Editorial Team

CalcVault Editorial Team

Verified Content Team

The CalcVault Editorial Team is a group of finance, health, and mathematics specialists dedicated to producing accurate, bilingual calculator content for Vietnamese and global small business owners. Every formula on CalcVault undergoes rigorous source verification against authoritative bodies including the IRS, CFPB, CDC, WHO, and NIST before publication. Our process includes independent peer review, structured fact-checking, and scheduled content audits to ensure every calculator remains up-to-date with the latest regulatory and scientific standards. We are committed to editorial independence from our advertising partners.

Areas of Expertise

Personal FinanceVietnam Tax & PayrollHealth Metrics & BMIApplied MathematicsBusiness LendingSMB Financial Planning
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