The formula for profit is very simple and it is expressed as the difference between the total sales or revenue and the total expenses. How to improve net profit. Reduce overall direct costs.
When you deduct all the businesss expenses you reach the net profit.
Subtract the business expenses from the gross profit. Here is the formula for net profit. This amount is subtracted from gross profit. Net ProfitNet Income Gross Profit Total Operating Expenses Interest Taxes Amortization Depreciation.