Result
Net profit
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Net profit = revenue − all expenses for the period. It's what's actually left after literally everything — unlike gross and operating profit, nothing is left out here: not debt interest, not taxes, not one-off items.
Net profit is a handy final number but a poor diagnostic tool on its own: if it drops, the cause could be anywhere — pricing, cost of goods, operating expenses, interest on a new loan, or a one-off write-off. To find the cause, you need to walk down the chain — gross profit, operating profit, EBIT — and see exactly where profit starts slipping.
One-off events (an asset sale, a legal settlement, a large write-off) distort a single period's net profit and don't reflect the business's steady earning ability. For forecasting, it's more useful to look at net profit across several periods and separate out one-off items, rather than trust a single period's number.