Profit margin
Calculator.
We separate gross profit, order contribution and operating profit.
Your assumptions
Illustrative defaults only, never Further or client figures. Currency is AUD, excluding GST. Enter 20 for 20%. Optional fields can stay blank or zero. Your inputs stay on this page.
Scenario result
Operating profit
A$15,000.00
- Gross profit
- A$65,000.00
- Gross margin
- 65%
- Contribution after variable costs
- A$30,000.00
- Operating margin
- 15%
A$15,000 left after everything, which is what the period actually earned. A$65,000 of gross profit became A$30,000 after variable costs, and the overheads took the rest.
The maths
Gross profit = 100,000 - 35,000 = 65,000 AUD.
Variable costs = 35,000 + 10,000 + 2,000 + 20,000 + 3,000 = 70,000 AUD. Contribution = 100,000 - 70,000 = 30,000 AUD.
Operating profit = 30,000 - 15,000 = 15,000 AUD. Operating margin = 15,000 / 100,000 × 100.
Break-even revenue = 15,000 / (30,000 / 100,000) = 50,000 AUD.
Before you use it
All costs and revenue must cover the same period. Break-even revenue holds the current variable-cost ratio constant; tax and financing costs are excluded.
This is a planning scenario, not a forecast or financial advice. Compare it with your actual order and customer records before changing spend.
Questions worth asking
What counts as gross profit here?
Gross profit is revenue less COGS. Contribution then deducts fulfilment, processing, media and other variable costs. Operating profit also deducts fixed costs.
How should I read break-even revenue?
We divide fixed costs by the current contribution-to-revenue ratio. If that ratio isn't positive, break-even revenue is N/A. The ratio may change as sales grow.
Keep working through the numbers
Put the numbers to work.
We can look at the assumptions with you and decide what to test next.