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

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## 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:**

- First, determine the total net profit ($). In this example, the total net profit ($) is given as 1000.
- Next, determine the net profit tax rate (%). For this problem, the net profit tax rate (%) is given as 25.
- 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 ($)