Start free →
Free calculator

Net Income Calculator

Work out your bottom line in seconds. Enter revenue and costs to see net income, net margin and how each cost eats into your revenue.

Your numbers

$
$
$
$
%
Net income
$181,700
Gross profit
-
Operating income (EBIT)
-
Pre-tax income
-
Net margin
-

How net income is calculated

Net income is what's left after every cost is taken out of revenue. The chain is: Revenue − COGS = Gross profit, then − operating expenses = operating income (EBIT), then − interest = pre-tax income, and finally − tax = net income. Net margin is net income divided by revenue, for SaaS, a healthy net margin grows as you scale because software costs don't rise as fast as revenue.

Worked example: net income on $1M of revenue

A company with $1,000,000 of revenue, $250,000 of COGS, $500,000 of operating expenses, $20,000 of interest and a 21% tax rate:

Default inputs of the calculator above. Change any input to run your own numbers.
Revenue$1,000,000
− COGS$250,000
= Gross profit$750,000
− Operating expenses$500,000
= Operating income (EBIT)$250,000
− Interest expense$20,000
= Pre-tax income$230,000
− Tax (21% of $230,000)$48,300
= Net income$181,700
Net margin ($181,700 ÷ $1,000,000)18.2%

Embed this calculator on your site

Free to use. Copy the snippet, it drops the calculator into any page and adds a small credit link back here.

Frequently asked questions

What is the net income formula?
Net income = revenue − COGS − operating expenses − interest − tax. On the default inputs: $1,000,000 − $250,000 − $500,000 − $20,000 − $48,300 = $181,700. See what is net income.
How do you calculate net income margin?
Net margin = net income ÷ revenue × 100. $181,700 ÷ $1,000,000 = 18.2%.
What is the difference between net income and gross profit?
Gross profit is revenue minus COGS only. Net income also subtracts operating expenses, interest and tax, so it is always the smaller of the two unless all of those are zero.
Is net income the same as EBITDA?
No. EBITDA is earnings before interest, tax, depreciation and amortization; net income comes after all of them. This calculator has no separate D&A line, so include depreciation in operating expenses, or use the interactive P&L, which splits it out.
How do you calculate net income in Excel?
Put revenue, COGS, OPEX, interest and the tax rate in cells B1 to B5, then pre-tax income is =B1-B2-B3-B4 in B6 and net income is =B6-MAX(0,B6)*B5. The MAX keeps tax at zero when there is a loss, as this calculator does.
Can net income be negative?
Yes, that is a net loss. When pre-tax income is negative the calculator charges no tax, so the net loss equals the pre-tax loss.

Email yourself these numbers

Get the result in your inbox plus occasional SaaS-finance playbooks. No spam.

Cite this page

Citation

Adlega. "Net Income Calculator and Formula (with Example)." Updated October 22, 2026. https://adlega.com/blog/tools/net-income/

Link for your article

<a href="https://adlega.com/blog/tools/net-income/">Net Income Calculator and Formula (with Example)</a> (Adlega, updated October 22, 2026)

Plan the whole picture in Adlega

Adlega turns these one-off numbers into a live financial model for your SaaS, projections, scenarios, dashboards.

Try Adlega free