Enter the total net profit (\$) and the net profit tax rate (%) into the calculator to determine the Tax on Profit.

## Tax on Profit Formula

The following formula is used to calculate the Tax on Profit.

ToP = NP * TR/100

• Where ToP is the Tax on Profit (\$)
• NP is the total net profit (\$)
• TR is the net profit tax rate (%)

## How to Calculate Tax on Profit?

The following example problems outline how to calculate Tax on Profit.

Example Problem #1:

1. First, determine the total net profit (\$). In this example, the total net profit (\$) is given as 1000.
2. Next, determine the net profit tax rate (%). For this problem, the net profit tax rate (%) is given as 25.
3. Finally, calculate the Tax on Profit using the equation above:

ToP = NP * TR/100

The values given above are inserted into the equation below:

ToP = 1000 * 25/100 = 250 (\$)

Example Problem #2:

The variables needed for this problem are provided below:

total net profit (\$) = 50000

net profit tax rate (%) = 16

Entering these values and solving gives:

ToP = 50000 * 16/100 = 8000 (\$)