Profit Margin
Understand profit as a share of your revenue.
Business & Work · FREE TO USE
Profit Projection Calculator
Model monthly revenue, variable costs, fixed costs, and cumulative operating surplus.
02EXAMPLE RESULT
Total operating profit
36,000.00
currency units
Cumulative surplus after initial outlay31,000.00currency units
First outlay recoveryMonth 2
Months modeled12
Results update as you type. Calculate adds a snapshot to your history.
Inspect the monthly scenario
All money columns use the same currency. This models operating profit and cumulative surplus, with the exclusions stated below.
| Month | Revenue | Variable costs | Fixed costs | Operating profit | Cumulative surplus |
|---|---|---|---|---|---|
| 1 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | -2000.00 |
| 2 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 1000.00 |
| 3 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 4000.00 |
| 4 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 7000.00 |
| 5 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 10000.00 |
| 6 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 13000.00 |
| 7 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 16000.00 |
| 8 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 19000.00 |
| 9 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 22000.00 |
| 10 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 25000.00 |
| 11 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 28000.00 |
| 12 | 10000.00 | 3000.00 | 4000.00 | 3000.00 | 31000.00 |
How this calculation works
Revenue growth compounds each month. Revenue and variable costs round half up to cents each month. Fixed costs stay constant. This scenario excludes tax, financing, working-capital timing, depreciation, and inflation. It is an editable assumption model, not a prediction.
Monthly operating profit = revenue − variable costs − fixed costs. Cumulative surplus starts at −initial cash outlay.
Your calculation, step by step
- Calculate each month using the assumptions entered.
- Round revenue and variable costs to cents each month.
- Sum operating profit and subtract the initial cash outlay for cumulative surplus.
A worked example
Revenue of 10,000, variable costs of 30%, and fixed costs of 4,000 give monthly operating profit of 3,000. Over 12 flat months, profit totals 36,000; less 5,000 initial outlay, cumulative surplus is 31,000.
Work through an example.
Inspect the assumptions and limits before applying a result.