Net Income Calculator
Net Income Calculator
Calculate net income from gross revenue through all expense categories
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Formula
Net Income = Revenue - COGS - Operating Expenses + Other Income - Interest Expense - Taxes. Gross Margin = Gross Profit / Revenue. Net Margin = Net Income / Revenue.
Frequently Asked Questions
How do you calculate net income?
Net Income = Revenue - COGS - Operating Expenses + Other Income - Interest - Taxes. Start with gross revenue, subtract cost of goods sold to get gross profit, subtract operating expenses to get operating income, then account for other income, interest, and taxes.
What is a good net profit margin?
A good net profit margin varies by industry. Generally, 10%+ is considered healthy. Technology companies may see 15-25%, while retail operates on 2-5%. Manufacturing averages 5-10%. Compare within your specific industry for a meaningful benchmark.
What is the difference between gross, operating, and net income?
Gross profit = Revenue - COGS (direct costs). Operating income = Gross profit - operating expenses (rent, salaries, etc.). Net income = Operating income + other income - interest - taxes. Each level shows profitability at a different stage of the business.
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