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Business Profit Calculator

Calculate your gross profit, net profit and profit margin from your business revenue and costs.

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Your numbers

£
£

Direct costs of producing your goods or services

£

Interest, asset sales, grants etc.

Net profit after tax
£60,750
Net margin 24.3% · Gross margin 60.0%
Where your revenue goes Annual breakdown
Net profit
COGS
Operating expenses
Corporation tax
Item Amount
Revenue £250,000
COGS -£100,000
Gross profit £150,000
Operating expenses -£70,000
Net profit before tax £80,000
Corporation tax (est.) -£19,250
Net profit after tax £60,750

Results are estimates only and do not constitute financial advice.

Typical profit examples

Net profit at different revenue levels and typical margins. Indicative only.

Revenue At 10% net margin At 20% net margin At 30% net margin

How it's calculated

Gross profit = Revenue − COGS. The direct profitability of your products or services.

Operating profit / Net profit before tax = Gross profit − Operating expenses + Other income.

Corporation tax is estimated using 2026/27 UK rates: 19% on profits up to £50,000, 25% on profits over £250,000, with marginal relief between.

Margin = profit / revenue × 100. Gross margin uses gross profit; net margin uses net profit after tax.

Frequently asked questions

What is a good profit margin?

Anything above 10% net margin is healthy for most small businesses; varies hugely by industry.

Gross vs net profit?

Gross = revenue minus COGS. Net = after all operating expenses and tax.

How to improve margins?

Raise prices, lower COGS, cut unnecessary operating expenses. Most businesses find 5-10% with a systematic review.

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