Enter the total revenue and total expenses into the calculator to determine the total net profit.

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## Net Profit Formula

The following formula is used to calculate the net profit of a business.

NP = R - E

- Where NP is the net profit
- R is the total revenue
- E is the total expense

To calculate the net profit, subtract the total expenses from the total revenue.

Some important things to keep in mind with the above equation. In general, the total revenue and total expenses should only be considered for the specific aspect or product being analyzed. For example, you should not use the total revenue for the entire business and then the total expense for a specific portion of the business.

## Net Profit Definition

A net profit is defined as the difference between the total revenue and total expenses of a company, product, or business segment.