Business Profit Calculator
Use this free business profit calculator to work out your gross profit, net profit, total expenses, and profit margins in seconds. Enter your revenue and costs below — every calculation happens in your browser, and nothing is stored or sent anywhere.
Your results
Revenue − COGS
COGS + operating + other
Revenue − total expenses (your bottom line)
of revenue
of revenue
Enter your total revenue to see a plain-English breakdown of your profit.
Profit is not the same as cash in the bank. Your bank balance also reflects unpaid invoices, loan repayments, owner draws, and equipment purchases — so it can be higher or lower than the profit shown here.
Track these numbers automatically with YourProfitBook
This calculator gives you a one-time snapshot. Log your income and expenses in YourProfitBook and your gross profit, net profit, and margins update on their own — every day, every month, with no spreadsheets. The free plan covers your first 30 transactions with no credit card required.
How each calculation works
Every figure this calculator produces comes from a simple formula. Here is exactly what each one means and how it is worked out, in plain English.
Total revenue
All sales and income for the periodRevenue is every dollar your business brought in before any costs are taken out — product sales, service fees, and any other business income. It is the top line of your profit calculation, not your profit.
Cost of goods sold (COGS)
Direct cost of what you soldCOGS covers the direct costs tied to the products or services you sold — raw materials, inventory, ingredients, or packaging. If you run a service business with few direct costs, this may be small or zero.
Gross profit
Revenue − COGSGross profit is what is left after subtracting the direct cost of your sales. It shows how much each sale contributes before your running costs. A healthy gross profit gives you room to cover operating expenses and still keep a profit.
Operating expenses
Your running costsThese are the ongoing costs of keeping the business open — rent, wages, software subscriptions, marketing, fuel, insurance, and bank or payment fees. They are not tied to a single sale but still have to be paid.
Total expenses
COGS + operating expenses + other expensesThis is everything it cost to run your business for the period. Adding all your costs together in one number makes it easy to compare against revenue.
Net profit
Revenue − total expensesNet profit is your true bottom line — what remains after every cost is paid. If it is positive, the business made money; if it is negative, it ran at a loss for the period.
Gross margin
(Gross profit ÷ revenue) × 100Gross margin expresses gross profit as a percentage of revenue. It tells you how much of each sales dollar is left after direct costs, which is useful for comparing pricing across products or months.
Net profit margin
(Net profit ÷ revenue) × 100Net profit margin is net profit as a percentage of revenue — the share of every dollar of revenue you actually keep. It is one of the clearest single measures of how healthy your business is.
Want to see these formulas applied to a full month with a line-by-line table? Read our profit and loss tracking guide or grab the monthly profit report template.
Frequently asked questions
How does the business profit calculator work?
Enter your total revenue, cost of goods sold (COGS), operating expenses, and any other expenses. The calculator instantly works out your gross profit (revenue minus COGS), your total expenses, your net profit (revenue minus all expenses), and both your gross and net profit margins as percentages. All of the math happens in your browser — nothing is sent anywhere or saved unless you choose to.
What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct cost of what you sold (cost of goods sold), such as materials and inventory. Net profit is what remains after you also subtract operating expenses like rent, wages, software, and marketing. Net profit is your true bottom line.
How do you calculate net profit margin?
Divide net profit by total revenue and multiply by 100. For example, $4,250 net profit on $13,500 revenue is 4,250 ÷ 13,500 = 0.315, or a 31.5% net profit margin. The calculator does this for you automatically.
Is my financial data saved or shared?
No. The calculator runs entirely in your browser and does not store your numbers or require an email address. Your figures are only turned into a shareable link if you explicitly click the share button — nothing is saved otherwise.
Is my profit the same as the cash in my bank account?
No. Profit is revenue minus expenses for a period. The cash in your bank account also reflects unpaid customer invoices, loan payments, owner draws, and equipment purchases, so it can be higher or lower than your profit. This calculator measures profit, not cash flow.
Do I need to sign up to use the calculator?
No signup or email is required to use the calculator. If you want these numbers tracked automatically every month from the income and expenses you log, you can create a free YourProfitBook account, but it is entirely optional.
Keep going
This calculator is for general informational purposes only and does not constitute tax, accounting, or financial advice. Results are estimates based on the figures you enter. For decisions specific to your business, consult a qualified accountant or tax professional.