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How to calculate After-tax profit

The After-tax profit formula, with plain worked examples you can check yourself.

After-tax profit = EBT × (1 − t)

Worked examples

EBT = 1000 · t = 30%After-tax profit = 700
EBT = 1000 · t = 30%After-tax profit = 700
EBT = 500 · t = 30%After-tax profit = 350

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Profit & Margins.

Related terms

RevenueGross marginNet incomeEBITDAOperating profit

Practice After-tax profit with real numbers

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