Finance

Accounting Profit Calculator

Calculate gross profit, operating profit, and net income from a simplified income statement.

Total Revenue ($)

Cost of Goods Sold (COGS) ($)

Operating Expenses ($)

Depreciation ($)

Interest Expense ($)

Tax Rate (%)

Other Income / (Expenses) ($)

Income Statement Flow:
Gross Profit = Revenue − COGS
Operating Profit (EBIT) = Gross Profit − OpEx − Depreciation
EBT = EBIT − Interest + Other
Net Income = EBT − Taxes

Understanding Profit Levels

Gross Profit: Revenue minus direct costs of production. Shows product-level profitability.
Operating Profit (EBIT): Gross profit minus operating expenses. Shows core business profitability before financing.
Net Income: Bottom line after all costs, interest, and taxes. What shareholders actually earn.

Accounting vs Economic Profit

Accounting profit only considers explicit (out-of-pocket) costs. Economic profit also subtracts opportunity costs — what you could have earned elsewhere. A business with positive accounting profit may have negative economic profit.