Net Profit Calculator

Net profit margin is the percentage of revenue that remains after all expenses have been deducted. It is calculated as (Net Profit / Revenue) x 100. A higher net profit margin means a larger share of every rand earned translates into actual profit for the business.

Gross profit only subtracts the cost of goods sold (COGS) from revenue, while net profit subtracts all expenses including operating costs, salaries, marketing, administration and taxes. Net profit gives you the true bottom-line picture of business profitability.

Net profit margins vary widely by industry. In general, a margin of 10% is considered average, 20% is good, and 5% or below is low. Service businesses often have higher margins than retail or manufacturing. Compare your margin against industry benchmarks for the most meaningful insight.

You can improve net profit margin by increasing revenue (raising prices or selling more), reducing costs (negotiating with suppliers, cutting waste), improving operational efficiency, or optimising your tax strategy. Tracking expenses by category, as this calculator does, helps you identify where the biggest savings opportunities lie.

Both are useful. Net profit before tax shows your operational efficiency, while net profit after tax shows the actual cash retained by the business. This calculator includes a tax field so you can see the full after-tax picture. If you are unsure of your tax liability, use our Income Tax Calculator to estimate it.