2026 Small Business Profit Estimator
Turn your revenue, COGS, and expenses into a clear pre-tax profit and margin picture — plus a rough after-tax projection for sole proprietors.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Business Figures
Profit Estimate (Before Tax, 2026)
* Estimates only. Not tax or accounting advice. Depreciation, entity type, and state rules vary — verify with the IRS or a licensed CPA.
From Revenue to Profit
Margin at Every Step
See gross, operating, and net margins so you know exactly where your money is absorbed — not just the bottom-line number.
Plan Your Tax Bill
The after-tax projection uses the same 2026 IRS logic as our Self-Employment Tax Calculator.
Depreciate Equipment
Model depreciation the way the IRS allows under MACRS — try our MACRS Depreciation Calculator for detail.
Watch Your Cash Flow
Profit is not the same as cash. Pair this with our Cash Flow Calculator to time bills and receipts.
Authoritative References (2026)
- IRS — Publication 334, Tax Guide for Small Business: irs.gov/forms-pubs/about-publication-334
- IRS — Publication 535, Business Expenses: irs.gov/forms-pubs/about-publication-535
- IRS — Schedule C (Form 1040), Profit or Loss From Business: irs.gov/forms-pubs/about-schedule-c
- IRS — Publication 946, How to Depreciate Property (MACRS): irs.gov/forms-pubs/about-publication-946
Small Business Profit FAQs
Gross profit is revenue minus the direct cost of goods sold (COGS). Operating income subtracts operating expenses, and net profit before tax further subtracts items like depreciation. Net profit is what is left for the owner before income tax.
For a sole proprietor, net profit before tax here approximates the Schedule C net profit (revenue − COGS − business expenses). The IRS treats that profit as personal income subject to income tax and self-employment tax.
Depreciation spreads the cost of long-lived assets (equipment, vehicles) over their useful life instead of expensing them all at once. It lowers taxable profit in later years and is reported under MACRS per IRS rules.
Yes, for a sole proprietor / single-member LLC the rough projection applies the 15.3% self-employment tax and federal income tax to net profit. It is a simplified estimate — corporate entities and S-corps are handled differently.