💰 Finance calculator

Income from Continuing Operations Calculator

Calculate after-tax income from continuing operations from pretax income and either a tax rate or a direct tax expense amount. Optionally add discontinued operations to see the full income statement breakdown — continuing operations, discontinued ops (net of tax), and net income — with EPS for both lines.

Enter income statement data

Use only the continuing-operations figures — exclude anything related to discontinued or held-for-sale segments.

🟢 Continuing operations — pretax
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Revenue minus all costs, before tax — continuing ops only
🔵 Tax input method
%
Applied to pretax continuing income
⚪ Optional — EPS & discontinued operations
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For EPS from continuing ops — leave blank to skip
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Positive = gain, negative = loss — leave blank to skip

Two formula variants

Rate method: Tax = Pretax × Rate%
Then: Continuing ops = Pretax − Tax
Direct method: Continuing ops = Pretax − Tax expense
Both give the same result when tax is consistent.

Net income identity

Net income = Income from continuing operations ± Discontinued operations (net of tax)
Continuing ops is the recurring component. Discontinued ops is shown separately and excluded from forward-looking analysis.

Tip: analysts and consensus earnings estimates almost always use income from continuing operations — not net income — for EPS comparisons and P/E ratios. A large discontinued-operations gain can make net income look much better than the core business actually performed.
This calculator is for educational and planning purposes only. Real financial statements may allocate tax across continuing operations, discontinued operations, and other items in more detail. Always review the tax footnotes when working with actual company filings.

Frequently asked questions

What is income from continuing operations?

It is the after-tax profit earned from the parts of the business expected to continue operating in future periods. It excludes gains, losses, and results related to discontinued or held-for-sale segments, which are reported separately on the income statement.

Why offer both tax rate and tax expense modes?

Textbook problems typically provide a tax rate, while financial statements show an allocated tax expense for continuing operations in the notes. The rate mode estimates tax as pretax income × rate%. The expense mode uses the actual tax amount directly — more accurate when reviewing real company filings.

Is income from continuing operations the same as net income?

Not when discontinued operations are present. Net income equals income from continuing operations plus or minus discontinued operations (net of tax). When there are no discontinued segments, the two figures are identical.

Can income from continuing operations be negative?

Yes. If pretax income from continuing operations is a loss, the tax effect is a benefit (not an expense), reducing the magnitude of the loss. For example, a pretax loss of −$200,000 at a 25% rate produces a tax benefit of $50,000, giving a continuing-operations loss of −$150,000.

Related finance calculators

These tools pair naturally with income from continuing operations analysis.

Margin Calculator Calculate gross and operating margins — the upstream components that drive pretax income from continuing operations. Vertical Analysis Calculator Express every income statement line as a percentage of revenue, including income from continuing operations. Period Cost Calculator SG&A and other period costs reduce pretax income from continuing operations — calculate their total here. Retained Earnings Calculator Net income — which starts with continuing operations — flows into retained earnings each period.

Disclaimer

This calculator is for educational and planning purposes only. It does not provide accounting, tax, investment, or legal advice. Always review the exact presentation and tax footnotes in a company's financial statements when making formal decisions.