Profitability guide
How to use the net income calculator
Worked example
Net income: calculation example
$150,000 net revenue minus $55,000 cost of sales, $60,000 operating expenses, $3,000 interest, and $6,000 income tax expense gives $26,000 estimated net income and a 17.3% net margin.
This simplified view does not replace a complete income statement. Accruals, non-operating items, and owner-specific tax treatment may change the result.
Common question
Understand the result
Is net income the same as cash flow?
No. Receivables, unpaid bills, depreciation, asset purchases, and borrowing can make cash movements differ from accounting profit.