Net Income Calculator
The bottom line, after tax.
Net income
$18,000
15.0% of revenue
Net income is an accounting measure, not cash. Stock purchases and payment timing can leave a profitable business short.
How the Net Income Calculator works
Net income is what is genuinely left: after goods, after overheads, after interest, after tax. It is the figure that can be distributed or reinvested, and the only one that reflects what the business actually produced for its owner.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is net income calculated?
Revenue minus cost of goods, minus operating expenses, minus interest, minus tax. Each subtraction has a name — gross profit, operating profit, pre-tax profit — and net income is what survives all four.
Is net income the same as cash in the bank?
No, and conflating them causes real problems. Net income is an accounting measure; cash depends on when customers pay, when you pay suppliers, and how much capital is tied up in stock. Profitable businesses fail on cash flow regularly.
How do I estimate the tax line?
It depends on structure and jurisdiction — sole trader income tax differs from corporation tax, and allowable expenses vary widely. Use an approximate rate for planning and get the real figure from an accountant.
Should net income include owner drawings?
Drawings are a distribution of profit, not a cost, so they come after net income. A salary paid to an owner-director is a cost and comes before it. The distinction matters for both tax and for understanding true profitability.