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Finance & Business · pattern A, Numeric fields

Gross, operating and net profit in one view.

Enter revenue, cost of sales, operating expenses, interest and tax for each profit level and the margins they produce.

Inputs

The formula used

gross = revenue − COGS; operating = gross − opex; net = operating − interest − tax

The three levels answer different questions: gross tests pricing, operating tests the business model, net tests the whole entity including financing.

Net profit

26,000.00

Gross profit
110,000.00
Gross margin
44.00 %
Operating profit
40,000.00
Operating margin
16.00 %
Net margin
10.40 %
Revenue needed to double net profit
309,090.91

Which profit figure someone quotes tells you something.

Gross profit tests whether the product is priced above its direct cost. Operating profit tests whether the business works once overheads are paid. Net profit is what remains for owners. A company emphasising gross margin while operating profit is negative is telling you where its problem is, by omission.

Questions about profit

What is EBITDA?
Earnings before interest, tax, depreciation and amortisation — a proxy for operating cash generation. It is not a substitute for cash flow, since it ignores working capital and capital expenditure.
Why is net profit lower than cash generated?
Because depreciation and amortisation are non-cash charges, while capital expenditure is cash that never appears in profit. Cash and profit diverge routinely.
Which margin should I compare across companies?
Operating margin, usually, since it excludes financing and tax structures. Compare within an industry, not across.

A calculator handles the arithmetic. It cannot teach you the method.

If the number is not the part you are stuck on, that is what the service is for — a specialist who explains the working, not just the answer.

These are coursework tools. Nothing here is financial advice, no figure accounts for tax rules in your jurisdiction, and no result should be relied on for a real borrowing or investment decision.