Answers the Question
How much money does a company make?
Calculator for Net Profit
What Is the Net Profit?
The formula results in a measure indicating how much money is earned or lost on a business venture.
Also known as:
- The bottom line
- Net income
- net earnings
Why Is it Important?
- Without knowing if a firm is profitable, it is difficult to know whether to invest in it or change the way it is run.
Formula(s) to Calculate Net Profit
- NET PROFIT = NET SALES - COST OF GOODS SOLD - OPERATING EXPENSES - TAXES - INTEREST
- The exact makeup of the formula differs between US and other jurisdictions.