Business Profit & Margin Calculator
Revenue is not profit.
Revenue is not profit. See your gross and net margin, your break-even point, and the revenue you actually need to hit a target owner-profit number.
Enter your numbers to see the math.
What this calculator does
It takes your revenue, cost of goods sold (COGS), and operating expenses, then computes gross and net profit, both margins, your break-even revenue, and the revenue required to reach a target profit. This is the "does the business actually work" math.
The formulas
Worked example
$500,000 revenue, $200,000 COGS, $150,000 opex. Gross profit is $300,000 (60% gross margin); net profit is $150,000 (30% net margin). Break-even is $150,000 ÷ 0.60 = $250,000 of revenue. To hit a $200,000 owner profit, you need ($150,000 + $200,000) ÷ 0.60 = ~$583,000 of revenue.
Assumptions & limitations
- Treats COGS as fully variable and opex as fixed — a simplification. In practice some costs sit in between.
- Does not model owner salary separately; include what you pay yourself in opex if you want a clean owner-profit number.
- Multiples for business valuation (2–4× SDE) are a separate question — see the path page.
FAQ
What is a good profit margin for a small business?
What is the difference between gross and net margin?
How do I calculate break-even revenue?
See the full context: How to make a million through business ownership →