THE NUMORIX GUIDE
How to use the Profit Calculator
Last reviewed September 14, 2026
What this calculator does
The engine calculates gross profit = revenue - COGS, operating profit = gross profit - operating expenses, and taxable income = operating profit + other income.
Formula and method
The engine calculates gross profit = revenue - COGS, operating profit = gross profit - operating expenses, and taxable income = operating profit + other income. Tax is max(0, taxable income x tax rate / 100), net profit is taxable income - tax, and each margin divides its profit by revenue when revenue is positive.
Variables and inputs
Enter revenue, cost of goods sold, operating expenses, other income, and tax rate. The dollar fields are period totals and the tax field is a percent from 0 to 100 in the UI. Other income may be positive or negative even though the main expense fields are nonnegative in the form.
Worked example
With $500,000 revenue, $300,000 COGS, $100,000 operating expenses, $5,000 other income, and a 25% tax rate, gross profit is $200,000 (40%), operating profit is $100,000 (20%), taxable income is $105,000, tax is $26,250, and net profit is $78,750 (15.75%).
How to interpret the result
The three margins show how much of revenue remains after product costs, operating costs, and the engine's simplified tax treatment. Positive net profit is not the same as positive cash flow, and a margin should be compared with the same business and reporting period.
Common mistakes to avoid
Do not put operating expenses into COGS or enter a tax decimal when the field expects a percent. Enter interest, gains, or losses in other income only if that matches the period and sign convention. Keep revenue and all costs on the same accounting basis.
Assumptions and limitations
The route is not a full income statement: it does not model depreciation, interest expense as a separate field, inventory accounting, deferred tax, tax jurisdictions, nonrecurring items, accruals, or cash timing. Negative taxable income receives zero tax rather than a modeled loss benefit, and zero revenue forces margins to zero.