Accounting Profit Calculator

Your details

Total sales or income before any costs are deducted.
Direct costs tied to producing goods or delivering services: raw materials, direct labour, manufacturing overhead.
Indirect costs of running the business: salaries, rent, utilities, marketing, administration. Do not include COGS here.
Non-cash expense that spreads the cost of long-lived assets over their useful life. Reduces taxable income.
Interest paid on loans, bonds, or any other debt financing. Deducted before tax.
Corporate income tax owed for the period. Enter the actual tax payable, not the rate.
The forgone return from the next-best alternative use of your time and capital. Used to calculate economic profit.
Currency
Accounting Profit (Net Income)Strong margin
$135,000.00

Revenue minus all explicit costs: the bottom line

Gross Profit$300,000.00
Gross Margin60%
EBITDA$200,000.00
Operating Profit (EBIT)$180,000.00
Operating Margin36%
Net Profit Margin27%
Total Explicit Costs$365,000.00
Economic Profit$135,000.00
Gross Profit$300,000.00
Operating Profit$180,000.00
Net Income$135,000.00

Accounting profit is 135,000 (27.0% net margin).

  • Gross margin is 60.0%, meaning 60.0 cents of every revenue dollar survives after covering the direct cost of production.
  • Operating margin (EBIT / revenue) is 36.0%, reflecting the efficiency of core business operations before financing costs and taxes.

Next stepCompare these margins against industry benchmarks for your sector to understand whether performance is competitive.

 = Powered by OnlyCalculators