How do I calculate net profit in excel?
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Answer / Rishitosh Tyagi
To calculate Net Profit in Excel, you can use the following steps:
1. Input your revenue (Revenue) and cost of goods sold (COGS) in separate cells. Let's assume Revenue is in cell A2 and COGS is in cell B2.
2. Calculate Gross Profit by subtracting COGS from Revenue: `=A2-B2`
3. Subtract operating expenses (OE, such as rent, utilities, salaries) from the Gross Profit to get Operating Income: `=(A2-B2)-C2` (assuming OE is in cell C2)
4. Calculate Net Profit by subtracting taxes (T) from Operating Income: `=(A2-B2)-C2-(D2)` (assuming taxes are in cell D2)
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