Want to know how much your business is making after tax? This calculator gives you the simple Net Income statement you need.
Use the Net Income Calculator to find out your business’s earnings after tax. Net income is one of the fundamental metrics for evaluating how well your business is doing, as well as what you can potentially re-invest into your business. Our other business calculators can give you more key performance indicators.
What is net income in the context of business?
Net Income is the sum of all sales income minus the costs related to the production of the goods and services. Also subtracted from the income are the costs related to the running of the company; the interest on any loan to the company; and finally taxes.
Why is Net Income important?
Net income is important as investors and managers alike need to understand whether or not the business is successful. It will also determine what you take home either as a business or as an individual. This is the big difference with gross income, which is more related to how much revenue your business is taking in.
What is the net income formula?
The Net Income is the Costs of Goods Sold and Other Expenses subtracted from your revenue for the year.
Revenue – Cost of Goods Sold – Expenses = Net Income
How does the net income calculator work?
Our net income calculator emulates the formula above. Afterwards, simply plug in the following values into the related fields.
Revenue : the amount of money generated your sales from your products or services
Cost of Goods Sold : the amount of costs associated with the production of your products or services.
Expenses : the sum of your selling expenses, general expenses, administrative expenses, operating expenses, depreciation of your equipment, interest payments, taxes and any other extra expenses not factored in.
Press the “calculate” button and you will obtain the net income of your business.
What can I calculate with Net Income?
You may want to look at what you can invest in other sectors such advertising based on your revenue. An Ad Spend Calculator gives you an estimate remaining budget for ads based on your expenses.
If you want to have a general appraisal of your business, to understand its true value, you can use our Business Value Calculator.