Worked example
$25,000 revenue minus $17,500 in expenses leaves $7,500 profit and 30% margin.
Business finance
Estimate profit or loss from revenue and total expenses.
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$25,000 revenue minus $17,500 in expenses leaves $7,500 profit and 30% margin.
The result excludes any tax or financing costs not included in your entered expenses.
Use complete revenue and expense figures from the same period. The result represents whichever level of profitability your expenses capture.
Start with the example values, then replace them with amounts for the same transaction or time period. Double-check rates and units. The results are estimates intended to help you explore possible outcomes, not financial or tax advice.
The meaning of profit depends on what you subtract. Product costs alone give a gross-profit-like figure; adding rent, software and salaries moves toward operating profit. Interest and income taxes may need further treatment.
Do not compare a full year's expenses against one month's sales. Select the same period for revenue and expense inputs and account for one-time or seasonal items when interpreting the margin.
Profit can still be negative with no revenue, but a percentage margin would require dividing by zero. The tool marks the percentage as unavailable instead of showing a misleading value.
Profit = revenue − expenses; margin = profit ÷ revenue × 100
Use complete revenue and expense figures from the same period. The result represents whichever level of profitability your expenses capture.