Net Income After Tax Calculator

Formula

The formulas used in the calculations are:

$\text{Gross Profit} = \text{Total Revenue} - \text{Cost of Sales (COGS)}$

$\text{Operating Income} = \text{Gross Profit} - \text{Operating Expenses}$

$\text{Net Income Before Taxes} = \text{Operating Income} - \text{Interest Paid}$

$\text{Net Income After Taxes} = \text{Net Income Before Taxes} \times (1 - \text{Tax Rate})$

$\text{Profit Taxes} = \text{Net Income Before Taxes} \times \text{Tax Rate}$

Description

This calculator computes the Net Income After Tax based on the input values of Total Revenue, Cost of Sales (COGS), Operating Expenses, Interest Paid, and Tax Rate. Net Income After Tax is the profit remaining after all expenses, including taxes, have been deducted from total revenue.

Example Calculation

Let's assume the following:

Total Revenue: $100,000
Cost of Sales (COGS): $40,000
Operating Expenses: $20,000
Interest Paid: $5,000
Tax Rate: 30%

Calculate the Gross Profit:

$\text{Gross Profit} = 100,000 - 40,000 = 60,000$

Calculate the Operating Income:

$\text{Operating Income} = 60,000 - 20,000 = 40,000$

Calculate the Net Income Before Taxes:

$\text{Net Income Before Taxes} = 40,000 - 5,000 = 35,000$

Calculate the Profit Taxes:

$\text{Profit Taxes} = 35,000 \times 0.30 = 10,500$

Calculate the Net Income After Taxes:

$\text{Net Income After Taxes} = 35,000 \times (1 - 0.30) = 24,500$

Therefore, the Net Income After Taxes is $24,500.