Net Profit
/ ˈnet ˈpräfət /
1. The remaining revenue after paying the Cost of Goods, Overhead expenses and Sales Commission.
Net Profit is the most powerful way to calcuate a price using The Profit Calculator. The estimated Cost of Goods (COGS) will be used to guarantee that the selling price will cover Overhead, Sales Commission and create the desired Net Profit percentage. This method takes the guess work out of calculating a profitable selling price.
Input - Cost of Goods
Input - Net Profit Percentage
Input - Overhead %
Input - Sales Commission %
Result - Selling Price
Result - Net Profit $
Result - Overhead $
Result - Sales Commission $
Result - Breakeven Price
Net Profit
Price
$285.71
Cost Of Goods
- $100.00
Overhead
- $142.85
Sales Commission
- $14.29
Net Profit
= $28.57
"The net margin (Net Profit) is perhaps the most important measure of a company's overall profitability."