This calculator helps you determine your true business profitability by calculating net profit and net profit margin. Unlike gross profit, which only considers direct costs, net profit includes all expenses such as overheads, marketing, platform fees, wages, and operational costs.
Understanding net profit margin is essential for evaluating the real performance of your business. A product may appear profitable at the gross level but become unprofitable once all additional costs are included. This tool gives you a clear and accurate picture of your bottom-line performance.
This is especially important for ecommerce businesses, retail operations, and service providers where multiple cost layers exist. By monitoring net margin, you can make better decisions around pricing, cost control, and business growth.
Formula: Net Profit = Revenue − Costs
The net profit figure shows how much money remains after all costs are deducted from revenue. The net margin percentage shows how efficiently your business converts revenue into actual profit.
The calculator subtracts total costs from revenue to determine net profit. It then divides the result by revenue to calculate net margin as a percentage.
This provides a complete view of your business performance, helping you understand whether your pricing and cost structure are sustainable.
Example 1: Revenue £10,000, Costs £8,200 → Profit £1,800 → Margin 18%
Example 2: Revenue £4,500, Costs £4,350 → Profit £150 → Margin 3.33%
Gross profit only includes direct costs, while net profit includes all expenses.
Yes, if your total costs exceed your revenue.
It shows the true profitability of your business after all costs are included.