Net Profit Calculator

How to use this calculator

1. Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
2. Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
3. Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.

When to use this calculator

• At the end of each month or quarter, to see the full picture after all major business expenses.
• Before deciding whether you can afford a new subscription, hire, or ad budget.
• When revenue is growing but your bank balance isn't.
• Before setting next year's pricing or income goals.

Formula

Net profit = Revenue − (Product + Shipping + Fees + Ads + Subs + Labor + Taxes + Other) · Margin = Profit ÷ Revenue × 100

Worked example

$5,000 revenue, $3,880 total costs.

1. Profit = 5000 − 3880 = $1,120
2. Margin = 1120 ÷ 5000 = 22.4%

Answer: $1,120 profit, 22.4% margin

How it works

Expert tips

• Run this monthly, not yearly — a thin month is fixable, a thin year is a habit.
• If net margin is under 10%, look for one big line to cut rather than trimming everything a little.
• Keep tax set-aside in the cost list even before you pay it. It's owed money, not spare cash.
• Compare two months side by side; the line that moved most is where your attention belongs.

How to interpret your results

• Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
• Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
• A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
• Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.

Common mistakes

• Forgetting your own labor.
• Treating a subscription as free because it's monthly.
• Skipping tax set-aside — it's a real cost even if unpaid.

Related Guides

Go deeper with plain-English guides on the same topic.

• What Is a Good Profit Margin?

  What counts as a healthy profit margin — and how it changes depending on what you sell and where.

  Read guide →

• What Is A Good Profit Margin? Complete Small Business Profit Margin Guide

  A 2026 profit margin guide — gross vs net vs contribution, what counts as a good margin, healthy benchmarks by industry and platform, formulas, and improvement strategies.

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• Pricing Psychology Explained: 25 Strategies That Increase Sales

  A 2026 pricing psychology guide — what it is, why it works, 25 specific techniques with examples, platform-specific applications, before/after scenarios, and ethics.

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• How to Price Handmade Products

  A simple formula for pricing handmade work that covers materials, labor, overhead, and profit.

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FAQ

What's a healthy net margin?

10–20% is a solid target for most physical-product businesses. Digital products can run much higher.

How is this different from Profit Margin Calculator?

Profit Margin is a single-sale tool. This one is period-level (monthly, quarterly) across every category of cost.

Why don't my sales equal my take-home money?

Revenue is what customers paid you. Net profit is what's left after product costs, fees, shipping, ads, software, labor, and tax set-aside. The gap is usually 70–90% of revenue.

Should I include my own pay as a cost?

Yes, if you want an honest number. Enter what you actually withdraw as labor — otherwise net profit looks healthy while your bank balance doesn't move.

Do subscriptions really matter?

They add up fast. Five $20 tools is $1,200 a year, which can be most of a small shop's profit. List every recurring charge in the subscriptions field.

What numbers do I need?

Revenue for the period plus totals for product cost, shipping, platform fees, ads, subscriptions, labor, tax set-aside, and anything else you paid.

Related calculators

You may also find these tools helpful.

• Profit Margin Calculator

  Universal profit, margin, and markup for any product or channel.

• Contribution Margin Calculator

  Per-sale contribution toward fixed costs and profit.

• Cash Flow Calculator

  Project ending cash and see if you cover your buffer.

• Tax Set-Aside Calculator

  Estimate how much to save from each sale for taxes.