Formulas
Gross profit = revenue − direct costs. Net profit = gross profit − operating expenses. Gross margin = gross profit ÷ revenue. Net margin = net profit ÷ revenue. Percentages are shown only when revenue is greater than zero.
How to interpret the result
Use the same period for every input (month, quarter, or year). This is a simplified planning view, not a formal profit-and-loss statement or tax calculation.
Preguntas frecuentes
- What belongs in direct costs vs operating expenses?
- Direct costs typically move with delivery of the product or service. Operating expenses are the costs of running the business even if a given sale did not happen. Split them in a way that matches how you review your own numbers.