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Net Profit Formula

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Net Profit is a key financial metric that represents the total amount of profit a company has earned after deducting all of its expenses from its total revenue. Check FAQs

N P = (S - C - d) \cdot (1 - Φ)

N_P - Net Profit?S - Total Sale Revenue?C - Total Product Cost?d - Depreciation?Φ - Tax Rate?

Net Profit Example

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Here is how the Net Profit equation looks like with Values.

Here is how the Net Profit equation looks like with Units.

Here is how the Net Profit equation looks like.

299661 = (500000 - 50451 - 50001) \cdot (1 - 0.25)

299661 = (500000 - 50451 - 50001) \cdot (1 - 0.25)

299661 = (500000 - 50451 - 50001) \cdot (1 - 0.25)

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Net Profit Solution

Follow our step by step solution on how to calculate Net Profit?

FIRST Step Consider the formula

N P = (S - C - d) \cdot (1 - Φ)

Next Step Substitute values of Variables

∴

N P = (500000 - 50451 - 50001) \cdot (1 - 0.25)

Next Step Prepare to Evaluate

∴

N P = (500000 - 50451 - 50001) \cdot (1 - 0.25)

LAST Step Evaluate

∴

N P = 299661

Net Profit Formula Elements

Variables

Net Profit

Net Profit is a key financial metric that represents the total amount of profit a company has earned after deducting all of its expenses from its total revenue.

Symbol: N_P

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Profit

Total Sale Revenue

Total Sale Revenue represents the total amount of money generated by a business from the sale of goods or services during a specific period, typically measured in months, quarters, or years.

Symbol: S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Sale Revenue

Total Product Cost

Total Product Cost refers to the overall cost incurred by a company to manufacture or produce a specific quantity of goods.

Symbol: C

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Product Cost

Depreciation

Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life.

Symbol: d

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Depreciation

Tax Rate

Tax Rate is the percentage at which income or the value of a transaction is taxed.

Symbol: Φ

Measurement: NAUnit: Unitless

Note: Value should be less than 1.

Formulas to find Tax Rate

Other formulas in Cost Estimation category

Go Total Capital Investment

TCI = FCI + WCI

Go Fixed Capital Investment

FCI = TCI - WCI

Go Working Capital Investment

WCI = TCI - FCI

Go Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule

C 2 = C 1 \cdot ({(\frac{Q 2}{Q 1})}^{n}) \cdot (\frac{I 2}{I 1})

How to Evaluate Net Profit?

Net Profit evaluator uses Net Profit = (Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate) to evaluate the Net Profit, Net profit is a fundamental measure of financial performance, indicating the amount of income a business retains after covering all expenses and taxes. Net Profit is denoted by N_P symbol.

How to evaluate Net Profit using this online evaluator? To use this online evaluator for Net Profit, enter Total Sale Revenue (S), Total Product Cost (C), Depreciation (d) & Tax Rate (Φ) and hit the calculate button.

FAQs on Net Profit

What is the formula to find Net Profit?

The formula of Net Profit is expressed as Net Profit = (Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate). Here is an example- 299661 = (500000-50451-50001)*(1-0.25).

How to calculate Net Profit?

With Total Sale Revenue (S), Total Product Cost (C), Depreciation (d) & Tax Rate (Φ) we can find Net Profit using the formula - Net Profit = (Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate).

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Net Profit Formula

Net Profit Example

Net Profit Solution

Net Profit Formula Elements

Other formulas in Cost Estimation category

How to Evaluate Net Profit?

FAQs on Net Profit

Variable Name