Result
Operating profit
—
Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.
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
Operating profit = revenue − COGS − operating expenses. It's the profit from core operations before loan interest and income tax affect it — the same thing as EBIT, computed top-down instead of by adding items back to net profit.
Operating profit differs from gross profit in that it also accounts for management, sales and admin costs, not just COGS — so it's closer to what the business actually earns from operations.
If you need a percentage rather than an absolute amount, use the separate operating margin calculator: it computes the same operating profit and shows its share of revenue right away.