Accounting Profit Calculator

Calculate gross, operating, and net profit and their margins from revenue and expenses.

Last updated: 2026-05-24T22:58:29.589Z

Total revenue ($)Cost of goods sold ($)

Operating expenses ($)

Depreciation ($)

Interest expense ($)

Taxes ($)

Results

Enter values to see calculated profit and margins.

What is Accounting Profit?

Accounting profit measures a firm's earnings after subtracting explicit costs including cost of goods sold, operating expenses, depreciation, interest, and taxes. It is the standard profit figure reported on financial statements and used for tax and reporting purposes.

This calculator shows gross, operating, and net profit as well as their margins so you can quickly gauge profitability at different levels of the income statement. Use conservative estimates for non-cash items like depreciation to better reflect economic performance.

How to Use

Enter total revenue and the main expense categories.
Review gross and operating profit to understand margin drivers.
Inspect net profit to see after-financing and tax effects.
Use margins to compare performance across periods or peers.
Adjust depreciation or interest to model alternative scenarios.

Example

Given revenue $500,000, COGS $200,000, operating $100,000, depreciation $25,000, interest $15,000, taxes $35,000 → Net Profit = $125,000 (25% net margin).

Frequently Asked Questions

What is gross profit?

Revenue minus cost of goods sold.

What is operating profit?

Gross profit less operating expenses and depreciation.

What is net profit?

Operating profit less interest and taxes.

How are margins calculated?

Margin = (profit / revenue) × 100.

Should I include non-recurring items?

Adjust as needed for one-time items to compare core performance.

Can I compare across companies?

Use margin percentages for comparability across sizes.

How to model tax changes?

Update taxes input and re-run to see net effect.

How to handle negative values?

Negative margins indicate losses; review expense drivers.