Business Profit Calculator
Last updated: 2026-06-25
Net profit = revenue − costs. If costs exceed revenue, it is a net loss (deficit). Profit margin = net profit ÷ revenue × 100.
It also shows an estimated income tax (for reference) assuming net profit is the tax base.
Business Profit Calculation
Net profit
0 KRW
| Item | Amount |
|---|---|
| Revenue (income) | |
| Costs (expenses) | |
| Profit margin | |
| Estimated income tax (reference) | |
| After-tax net profit (reference) | |
| Net profit |
The estimated income tax is a reference figure that assumes net profit is the tax base. For an accurate calculation reflecting deductions and credits, use the income tax calculator.
How to use
- Enter revenue — enter total revenue (income) for the period in Korean won.
- Enter costs — enter total costs (materials, rent, labor, etc.).
- View the result — press Calculate to see net profit (or loss), profit margin, and the estimated income tax based on net profit in a table.
How to calculate business profit (net profit)
Business profit is the revenue earned over a period minus the costs spent to earn it. Net profit = revenue − costs; a positive result is a surplus (net profit), a negative one is a deficit (net loss). Profit margin is net profit divided by revenue, showing how many won of profit remain per 100 won of revenue.
| Item | Formula | Example |
|---|---|---|
| Net profit | revenue − costs | 30,000,000 KRW |
| Profit margin | net profit ÷ revenue × 100 | 60% |
| Estimated income tax | net profit × progressive rate − progressive deduction (incl. 10% local tax) | about 3,564,000 KRW |
| After-tax net profit | net profit − estimated tax | about 26,436,000 KRW |
Capturing costs accurately matters here. Putting personal spending into costs distorts your profit and will not be recognized at tax filing; conversely, missing eligible costs makes you pay more tax. For profit it is standard to look at revenue on a supply-value basis excluding VAT — calculate VAT separately in the VAT calculator. Whether you get a tax refund is covered in the freelancer tax guide.
Frequently asked questions (FAQ)
How is business profit (net profit) calculated?
Net profit = revenue − costs. If revenue is greater than costs you have a net profit (surplus); if it is smaller, a net loss (deficit). Profit margin = net profit ÷ revenue × 100, showing how much of revenue remains as profit.
What should I include in costs?
All costs spent for the business: materials and purchases, rent, labor and outsourcing, communications, advertising, transport, fees, depreciation, and so on. Exclude personal spending to get an accurate profit.
What is the estimated tax shown here?
It assumes the net profit is the tax base and applies the progressive income tax rates as a reference estimate. In reality it changes with income deductions, tax credits, and other combined income, so use the income tax calculator for a detailed refund / payment calculation.
Is VAT included in revenue?
For profit calculations it is standard to look at revenue on a supply-value basis, excluding VAT. VAT is money you collect from customers and remit to the government, so it is not business profit. Calculate VAT separately in the VAT calculator.
Related calculators & guides
Freelancer Income Tax & Refund Calculator
Accurate tax / refund after expenses and deductions.
3.3% Withholding Tax Calculator
Calculate the gross and net of a payment.
VAT Calculator
Compute VAT both ways, supply value and total.
Freelancer Tax Guide
3.3% and the income tax refund explained in one place.
Last updated: 2026-06-25