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 ($)