Accounting Calculator
Calculate accounting ratios and equations.
Net Profit / Net Income Formula
Gross Profit:
Operating Expenses:
Taxes:
Interest:
Net Profit:
Formula: Net Profit = Gross Profit - Operating Expenses - Taxes - Interest

Why is Net Profit Important?

Net profit can give you a quick idea of the success of a company. It represents the money leftover after expenses and taxes are paid. Obviously, the bigger the net income, the better. However, just having a high net income one month doesn't mean everything is all right. What is most important is bringing in a good net income consistently, month after month.