Fill in your revenue and expense figures on the left and click Calculate Net Profit to see your complete P&L breakdown.
Net profit is the money left over after a business pays every single expense — the cost to make or buy what it sells, staff wages, rent, marketing, loan interest, and income taxes. It is the true "bottom line" on any income statement.
You can have strong revenue and still have a weak or negative net profit if your costs are too high. That is why tracking net profit — not just revenue — is the only real measure of whether a business is financially healthy.
Net profit margin converts the dollar figure into a percentage of revenue, making it easy to compare your performance with competitors or industry benchmarks regardless of your business size.
The complete income statement flows from top to bottom:
Example: Revenue $200,000 · COGS $80,000 · OpEx $60,000 · Tax 21% → Net Profit = $47,400 · Net Margin = 23.7%.
| Industry | Typical Net Margin | Key Cost Driver |
|---|---|---|
| Software / SaaS | 15% – 30%+ | R&D, sales & marketing |
| Professional Services | 10% – 25% | Staff wages |
| Healthcare | 5% – 15% | Supplies & clinical labour |
| Manufacturing | 5% – 15% | Raw materials, production |
| Restaurant / Food | 3% – 9% | Food cost & labour |
| E-commerce | 2% – 8% | Fulfilment & returns |
| Retail — General | 2% – 6% | Inventory & overhead |
| Construction | 2% – 6% | Labour & materials |
| Grocery | 1% – 3% | Inventory & spoilage |
Benchmarks are industry averages. Individual businesses vary widely based on size, location, and operational efficiency. To understand how shared costs affect your margin, try the overhead rate calculator.
These three profit measures each tell a different part of the story — none is better than the others; they answer different questions.
How much net profit remains at different revenue levels when total costs represent various shares of revenue (before tax).
| Revenue ($) | Total Costs 50%NP Margin 50% | Total Costs 65%NP Margin 35% | Total Costs 75%NP Margin 25% | Total Costs 85%NP Margin 15% | Total Costs 92%NP Margin 8% | Total Costs 97%NP Margin 3% |
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Net Profit = Revenue × Net Margin %. Currency shown as $. Figures are pre-tax illustrations.
How much revenue you need to generate a specific net profit at common net margin percentages.
| Target Net Profit ($) | At 5% Margin | At 10% Margin | At 15% Margin | At 20% Margin | At 30% Margin |
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Required Revenue = Target Net Profit ÷ Net Margin. Use this to set revenue targets when you know your cost structure.
How much of your pre-tax profit survives different corporate tax rates.
| Pre-Tax Profit ($) | Tax 10% | Tax 15% | Tax 20% | Tax 21% | Tax 25% | Tax 30% | Tax 35% |
|---|
Net Profit After Tax = Pre-Tax Profit × (1 − Tax Rate). Common corporate rates: US Federal 21%, UK 25%, Canada 15% federal, Australia 30%, Germany ~30%.
Reference ranges to compare your net margin against sector peers.
| Industry | Low | Average | High | Main Profit Leak | Key Metric to Watch |
|---|---|---|---|---|---|
| Software / SaaS | 5% | 18% | 35%+ | R&D & sales costs | Customer Acquisition Cost |
| Professional Services | 5% | 15% | 28% | Labour cost | Billable utilisation rate |
| Healthcare / Medical | 3% | 10% | 20% | Admin & compliance | Revenue per patient |
| Manufacturing | 2% | 8% | 18% | Materials & production | Cost per unit |
| Retail — Apparel | 3% | 7% | 15% | Inventory & rent | Sell-through rate |
| Retail — Electronics | 1% | 4% | 10% | Price competition | Gross margin per SKU |
| E-commerce | 1% | 5% | 12% | Fulfilment & returns | Return rate |
| Restaurant / Food | 1% | 5% | 12% | Food cost & labour | Revenue per seat |
| Construction | 1% | 4% | 10% | Labour & subcontractors | Bid-to-close ratio |
| Grocery / Supermarket | 0.5% | 2% | 5% | Spoilage & competition | Inventory turnover |
| Digital Products | 20% | 40% | 70% | Platform fees | Monthly recurring revenue |
| Finance / Insurance | 10% | 20% | 35% | Claims & defaults | Loss ratio |
Sources: NYU Damodaran, IBISWorld sector reports. Ranges are indicative. Company size, geography, and efficiency affect actual margins significantly.
How a 10% change in operating expenses affects net profit at different revenue and OpEx levels.
| Revenue ($) | OpEx ($) | Base Net Profit | −10% OpExNet Profit | +10% OpExNet Profit | Impact of 10% Change |
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Assumes COGS = 40% of revenue and no interest or tax for simplicity. A 10% cut in OpEx can have a disproportionately large impact on net profit.
Estimated annual net profit based on monthly revenue and common net margin percentages.
| Monthly Revenue ($) | Annual Revenue | At 3% NP | At 7% NP | At 12% NP | At 18% NP | At 25% NP |
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Annual Net Profit = Monthly Revenue × 12 × Net Margin %. Use this table to estimate how much your business could earn at full-year scale.