Business Calculator
Calculate net income and profit margin for your business. Essential tool for understanding business profitability and financial performance.
Total sales or income
All business expenses
What is a Business Calculator?
A business calculator helps you determine your business's net income and profit margin by calculating the difference between revenue and expenses. It's an essential tool for understanding your business's financial health and profitability.
Net income is the profit remaining after all expenses are deducted from revenue, while profit margin shows what percentage of revenue becomes profit.
How to Use the Business Calculator
- Enter revenue: Input your total business revenue or sales income.
- Enter expenses: Input all your business expenses including operating costs, overhead, and other expenses.
- Calculate: Click "Calculate Net Income" to see your net income and profit margin.
Understanding Business Profitability
Net Income
Net Income = Revenue - Expenses. This is the profit your business makes after all expenses are deducted. A positive net income indicates profitability, while negative indicates a loss.
Profit Margin
Profit Margin = (Net Income / Revenue) × 100. This percentage shows how efficiently your business converts revenue into profit. Higher margins indicate better profitability.
Why It Matters
Understanding your net income and profit margin helps you make informed decisions about pricing, cost management, and business growth strategies.
Frequently Asked Questions
What expenses should I include?
Include all business expenses: operating costs, salaries, rent, utilities, marketing, supplies, taxes, and any other costs associated with running your business.
What's a good profit margin?
Profit margins vary by industry. Generally, 10-20% is considered good, though service businesses may have higher margins (20-30%) while retail might have lower margins (5-10%).
What if my net income is negative?
A negative net income means your expenses exceed revenue, indicating a loss. Review your expenses and revenue streams to identify areas for improvement.
How often should I calculate this?
Calculate net income regularly (monthly or quarterly) to track your business performance over time and identify trends in profitability.
Related Calculators
Cite This Calculator
Reference this calculator on your website or in your work using the citation below:
HTML Citation Code:
<p>Calculator: <a href="https://onlinecalculator.co.uk/business/business-calculator" target="_blank">Business Calculator</a> - OnlineCalculator.co.uk</p>APA Style Citation:
OnlineCalculator.co.uk. (2025). Business Calculator. Retrieved from https://onlinecalculator.co.uk/business/business-calculatorNote: This calculator is free to use and reference. No permission required for educational or commercial citation.