Calculate gross profit and operating profit or loss from net revenue, cost of sales, and operating expenses for one consistent period.
A quick decision brief for this specific tool
Net revenue, cost of sales and operating expenses for one consistent accounting period
Signed gross and operating profit/loss, gross margin, operating margin and cost-of-sales ratio where revenue is nonzero
Subtracts cost of sales from net revenue for gross profit, then subtracts operating expenses for operating profit; it stops before interest, tax and non-operating items
Choose your path
Build a three-line operating statement for one period while keeping gross profit, operating profit, and unavailable net-income or break-even conclusions distinct.
Separate cost of sales from operating expenses and see both profit layers.
Enter net revenue, cost of sales, and operating expenses for the same month.
Gets correctly named gross and operating profit or loss plus defined margins.
Avoid calling operating income net income.
Compare the displayed arithmetic with source records and retain interest, tax, and non-operating items outside the tool.
Uses the result only through the operating line.
Recognize when the worksheet lacks contribution-margin inputs.
Review the boundary note and move to the dedicated break-even calculator with fixed and variable costs.
Does not treat cost of sales plus expenses as a fabricated break-even revenue.
Outputs and checklists are planning aids. Review the linked current authorities and the records, terms, instructions, and requirements that apply to your exact situation before a consequential decision.
This tool is part of these guided projects. Each project provides step-by-step instructions with checklists and all the tools you need in one place.
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Gross profit = Net revenue − Cost of salesSubtract operating expenses from gross profit. This is the operating line, not net income, because interest, taxes, and non-operating items are not entered.
Operating profit = Gross profit − Operating expensesGross and operating margins divide the corresponding signed result by net revenue. They are undefined when net revenue is zero. Break-even requires fixed costs and contribution margin, so this worksheet does not invent it.
Updated: August 2026
A shop keeps all inputs on the same month and separates cost of sales from operating expenses.
→ Operating profit: $25,000; gross profit: $40,000
A business sees that gross profit does not cover the entered operating expenses and receives an explicit operating-loss label.
A founder uses this tool to check the operating statement, then moves to a dedicated break-even model with separately documented fixed cost, variable cost, and price.
Net income normally comes after additional interest, tax, and non-operating lines. This calculator intentionally stops at operating profit.
Use the same period for every input and do not enter a cost in both cost of sales and operating expenses.
Build a compact three-line operating statement locally in your browser. The result preserves signed profit or loss and avoids unsupported net-income or break-even claims.