Net Income Calculator

A powerful time saving and convenience tool for business planning, this Calculator is all about figuring out how much money your company and/or it’s shareholders stand to actually make from the values you put in. Taking into account not just taxes vs total revenue, but operating expenses vs operating income as well as gross profit vs cost of sale, so that the Net Income value it provides can be tailored to your company’s situation.
See Some Examples

Examples:

For simple profit calculations just subtract sales cost from the total revenue to work out the gross profit, like so:
10,000 - 420 = 9,580

But what about operating expenses? This would define distribution cost, administrative fees and other expenses essential to the running of a company; those expenses would also need to be taken from the total Revenue, giving you what accountants call ‘Operating Profit’. This step is a good measure of how cost-effective a company is to keep running in its current state:

Examples:

10,000 - 420 - 1000 = 8,580

Then there is interest rate of debts (if the company has any), just skip this step if you don’t have any debts:

10,000 - 420 - 1000 - 180 = 8,400

If your company doesn’t have to pay taxes directly, then you can stop here, but say you have to pay 12% of the Profit before Taxes in your tax bracket? We can work that out on this calculator as well:

10,000 - 420 - 1000 - 180 - 1008 = 7,392

And here you have the Net Income in this example of £7,392. If you return a negative figure after all these steps, that would be a Net Loss, so let’s hope the numbers stay positive!