Calculate Net Profit

 Net profit

Net Profit is profit before tax is deducted. It is the starting point of the corporation tax in its simplest form ie

Net Profit = Sales (minus sales returns and VAT) minus costs (cost of sales and operating costs)
For example,



Sales [sum total of invoices]


Cost of Sales [suppliers cost of product to your business]


Gross profit


Operating costs [fixed costs to operate the business]


Net Profit