Profit & Loss Calculator
Calculate net profit or loss, profit margin, and break-even from revenue and cost data.
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How to use this calculator
Gross profit is revenue minus cost of goods sold. Subtracting operating expenses gives EBIT. Tax is applied to positive EBIT only. The remainder is net profit or loss.
- 1
Enter your total revenue and the direct cost of goods sold (COGS).
- 2
Add your operating expenses such as rent, salaries, and utilities.
- 3
Set your applicable tax rate to see the full breakdown through to net profit or loss.
Frequently asked questions
How does this profit and loss calculator get from revenue to net profit?
This tool uses gross profit = revenue − COGS, EBIT = gross profit − operating expenses, tax = EBIT × tax rate ÷ 100 (only if EBIT is above zero), and net profit = EBIT − tax. With the defaults ($50,000, $20,000, $15,000, 25%) the net profit is 11,250.00.
Why is tax zero when I make a loss?
Tax is only charged on positive EBIT in this tool. With revenue of 30,000, COGS of 18,000 and operating expenses of 16,000, EBIT is −4,000.00, tax is 0.00 and net profit is −4,000.00. The tool does not model refunds, credits, or carrying a loss forward against another year’s profit.
Which tax rate should I enter?
Whatever rate applies to your business and jurisdiction, as a plain percentage. The tool applies one flat rate to EBIT and does not include tiered brackets, deductions, interest or other taxes. It limits the rate to between 0 and 100, so 150 behaves as 100 and leaves a net profit of 0.00 on the default figures.
What is the difference between gross margin and net margin here?
Both are percentages of revenue. Gross margin = gross profit ÷ revenue, before operating expenses and tax, and net margin = net profit ÷ revenue, after both. The defaults give 60.00% and 22.50%. If revenue is 0 the tool shows 0.00% for both rather than dividing by zero.
Is EBIT the same as operating profit?
In this tool, yes: EBIT is revenue − COGS − operating expenses. There is no field for interest, so it is only truly earnings before interest if your operating expenses exclude interest. Depreciation counts as an operating expense only if you include it in that number.
What does the Status line say at exactly zero?
It reads “Break-even” when net profit is exactly 0.00, “Profit” when above zero and “Loss” when below. Earlier it called a zero result “Profit”, so an empty form showed a profit. Negative revenue, COGS or expenses are treated as 0.
Can I use it for a single product or a whole company?
Either, as long as all four numbers describe the same period and scope. It returns plain numbers without a currency symbol, so use the currency you entered. It is a quick single-period statement, not a full income statement, and does not handle interest, one-off items, owner pay or multiple revenue lines.
Profit and loss calculator — gross profit, EBIT, tax and net result in one pass
Four lines down to the bottom line
The calculator follows the order of a simple income statement. Cost of goods sold comes off revenue to leave gross profit. Operating expenses come off gross profit to leave EBIT. Tax is then applied to EBIT, and what remains is the net profit or loss. Margins are computed as a share of revenue so you can tell the scale of a result as well as its sign.
| Line | How it is calculated |
|---|---|
| Gross profit | Revenue − COGS |
| EBIT | Gross profit − operating expenses |
| Tax | EBIT × tax rate, only when EBIT > 0 |
| Net profit / loss | EBIT − tax |
| Gross / net margin | Gross profit or net profit ÷ revenue |
Three periods, three outcomes
The rows below show a typical profitable period, a loss, and a larger profitable one at a different tax rate. Every figure is calculator output for the inputs given.
| Revenue · COGS · opex · tax rate | Gross margin | EBIT | Tax | Net result | Net margin |
|---|---|---|---|---|---|
| 50,000 · 20,000 · 15,000 · 25% | 60.00% | 15,000.00 | 3,750.00 | 11,250.00 | 22.50% |
| 30,000 · 18,000 · 16,000 · 25% | 40.00% | −4,000.00 | 0.00 | −4,000.00 | −13.33% |
| 120,000 · 45,000 · 30,000 · 21% | 62.50% | 45,000.00 | 9,450.00 | 35,550.00 | 29.63% |
Where the loss comes from
The second period still has a gross margin of 40.00%, so it is selling above cost. The loss arises because operating expenses of 16,000 exceed the 12,000 of gross profit. That points to overhead, or to a gross margin that is too thin to carry it. The first period’s gap between 60.00% gross margin and 22.50% net margin is 37.50 points: 30.00 points of operating expenses plus 7.50 points of tax.
Treatment of tax
A single flat percentage is applied to positive EBIT, and nothing is charged on a loss. The tool does not carry losses forward, apply brackets, or deduct interest. If your actual tax calculation differs, use the EBIT line and apply your own treatment. For a pre-tax view, set the rate to 0 and the net result equals EBIT.
Setting up the numbers
Use one period and one scope for all four inputs, for example last quarter for the whole company. Put direct costs of producing what you sold in COGS and everything else needed to run the business in operating expenses, since moving a cost from one to the other changes gross margin without changing net profit. Results are plain numbers in whatever currency you typed. Re-running with a different cost estimate shows how much each assumption moves the net result.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →