Net Income Calculator

Calculate company net income from revenue, COGS, operating expenses, interest, and tax — complete with multi-step income statement, two-company comparator, and target profit solver.

⚠️ This calculator provideseducational estimates, not accounting/financial advice. The results help you understand the net income concept; they are not a basis for business or investment decisions.
Limits of this tool:this calculator computesnet income as the RESULT. If your direction is reversed — you already have a net income figure and want to compute other metrics from it — useFree Cash Flow Calculator(net income used asinputindirect method) orEBIT Calculator(computes EBIT from net income).

Basic Net Income

Five core components: subtract COGS, operating expenses, and interest from revenue to get EBT, then subtract tax.

Net Income = Revenue − COGS − Operating Expenses − Interest − Tax

Frequently Asked Questions about Net Income

The answers below are educational and not accounting/financial advice. Always do your own research before making business decisions.

What is net income?

Net income is a company's remaining revenue after all costs are deducted: cost of goods sold (COGS), operating expenses, interest expense, and tax. It is often called the bottom line because it appears at the very bottom of the income statement. Positive net income means the company is profitable, while negative means a net loss for the period.

What is the formula for calculating company net income?

The formula: Net Income = Revenue − COGS − Operating Expenses − Interest − Tax. Example: revenue 1,000 − COGS 400 − operating expenses 200 − interest 50 = EBT 350; tax 25% × 350 = 87.5; so net income = 262.5 with a net profit margin of 26.25%. Mode 1 of the calculator above computes exactly with this formula.

What is the difference between net income, gross profit, and operating profit?

The three are different stages in the multi-step income statement. Gross profit = revenue − COGS (example: 600 or 60% of revenue). Operating profit = gross profit − operating expenses (example: 400 or 40%). Net income = operating profit − interest − tax (example: 262.5 or 26.25%). Mode 2 of the calculator above shows all stages with their respective margins.

How do you calculate net profit margin?

Net profit margin = (Net Income ÷ Revenue) × 100%. Example: net income of 262.5 divided by revenue of 1,000 = 26.25%. This margin shows what percentage of each rupiah of revenue becomes net profit, making it useful for comparing the efficiency of two differently sized companies.

What is the difference between net income and free cash flow (FCF)?

Net income is computed on an accrual basis (including non-cash charges like depreciation), while free cash flow measures actual cash available after capital expenditure. A company can be profitable on paper yet short on cash. This calculator computes net income as the RESULT. If you already have a net income figure and want to compute free cash flow from it (indirect method: net income + depreciation − working capital changes − capex), use the Free Cash Flow Calculator at https://nrtechstudio.com/tools/free-cash-flow/ — there net income is used as the INPUT.

What is the difference between net income and EBIT?

EBIT (earnings before interest and taxes) is profit BEFORE deducting interest and tax, while net income is profit AFTER deducting interest and tax. The relationship: Net Income = EBIT − Interest − Tax. The computation runs opposite to this calculator: if you already have net income and want to work back to EBIT, use the EBIT Calculator at https://nrtechstudio.com/tools/ebit/.

What does it mean if net income is negative?

Negative net income means a net loss: total costs (COGS, operating, interest, tax) exceeded revenue in the period. This can be temporary (e.g. from a large one-off investment) or signal structural problems in the business model. Negative figures in this calculator are shown as-is as computation results, not as a judgment on the company's condition.

Free tool by NRTechStudio