Revenue Calculator

The three core financial metrics every business owner needs to understand.

Revenue (also called "top line") is the total money received from customers before any expenses are deducted. It's the headline number — impressive-sounding but incomplete. A business can double revenue and still go bankrupt if costs grow faster.

Gross profit = Revenue − Variable costs. Variable costs scale directly with sales volume: raw materials, packaging, shipping, payment processing fees, and direct labour. Gross profit tells you how much money remains to cover your overhead and generate profit. Gross margin is the percentage version — a gross margin below 30% is often unsustainable for most businesses.

Net profit ("bottom line") = Gross profit − Fixed costs. Fixed costs don't change with volume: rent, salaried staff, software subscriptions, insurance. Net margin is what you actually keep as profit. This is the number that determines whether your business is truly viable at its current scale.

Fixed costs create "operating leverage" — net margin expands rapidly as revenue grows past break-even.

Calculated using your current price and cost inputs. Fixed costs spread over more units as volume grows, expanding net margin.

Margin expectations vary dramatically by sector. Compare against your relevant benchmark.