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Business Income, Expenses and Tax Scenario

Subtract business costs and compare a manually entered tax amount with a flat-rate tax scenario.

Formula & worked example
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How to use this calculator

Enter the known values in the units shown. Results update as you type.
Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Revenue of 10000 less cost of sales of 4000, operating expenses of 2000, interest of 500 and tax of 700 gives net income of 2800.

Net income = revenue − cost of sales − operating expenses − interest − tax.

Worked example

Enter these known values and leave the other values blank.

Revenue: 10000 USD
Cost of sales: 4000 USD
Operating expenses: 2000 USD
Interest: 500 USD
Total taxes: 700 USD

Gross profit: 6000 USD
Operating income: 4000 USD
Net income before taxes: 3500 USD
Tax rate: 20 %
Net income after taxes: 2800 USD

Assumptions and limitations

This is an accounting arithmetic scenario. A flat tax percentage does not calculate statutory taxes, deductions, credits or progressive brackets.
Negative profit is allowed. A tax rate inferred from tax and pretax income is only a ratio for those entered amounts.
Amounts use a single consistent currency. Currency selector conversion factors are a captured static snapshot; they are not current FX quotes.
Clear the unknown field before solving an inverse. Locks keep known values fixed; contradictory locked values require correction.

Common questions

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