SellersCalc

Finance math

Net Profit Calculator

What is actually left after products and overhead both take their share of revenue.

Net profit = revenue − COGS − operating expenses. On $100,000 of revenue with $45,000 of cost of goods sold and $35,000 of operating expenses, net profit is $20,000 — a 20% net margin (20,000 ÷ 100,000). Gross profit alone flatters: this store keeps a 55% gross margin, yet overhead consumes 35 points of it before anything reaches the bottom line. Most healthy e-commerce businesses net between 5% and 20%; a persistently negative result means the model, not the month, needs fixing. Enter the three figures to get profit and margin.

Net Profit Calculator — your numbers

Net profit

$20,000.00

Net margin

20.0%

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Healthy small store

Revenue $100,000.00
Cost of goods sold (COGS) $45,000.00
Operating expenses $35,000.00
Net profit $20,000.00
Net margin 20.0%

A 20% net margin — strong for physical products once overhead is fully counted.

Scaling with heavier overhead

Revenue $250,000.00
Cost of goods sold (COGS) $140,000.00
Operating expenses $80,000.00
Net profit $30,000.00
Net margin 12.0%

More absolute profit ($30,000) at a thinner 12% margin — the usual price of scaling.

Frequently asked questions

What is the difference between gross profit and net profit?

Gross profit subtracts only the direct cost of goods sold — what it took to buy, ship, and fulfill the product. Net profit also subtracts everything it took to run the company: payroll, software, rent, and marketing. A store can post a 55% gross margin and still lose money once overhead lands, which is why net is the number that decides survival.

Where do interest and taxes fit in this calculation?

Revenue minus COGS minus operating expenses is technically operating profit; true bottom-line net profit also subtracts loan interest and income taxes. If you want the strict figure, include interest and your estimated tax bill in the operating-expenses field. For most day-to-day merchant decisions the pre-tax operating view is the more actionable number.

What is a good net profit margin for e-commerce?

Around 10% net is a common benchmark for healthy online stores; 5% is thin, and 20% or more is excellent for physical products. Margins vary widely by model — dropshipping often nets under 10%, owned-brand DTC 10–20%, and digital products far more. Judge against your own model, and watch the trend more than the level.

My net profit is positive but my bank account keeps shrinking — how?

Profit is an accounting result; cash is timing. Inventory purchases consume cash long before those units sell, marketplace payouts lag sales by days or weeks, and loan principal repayments never appear on the P&L at all. A profitable, growing store can absolutely run out of cash — track net profit and cash runway as separate numbers.

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Part of the Store Finance collection.