Free tool
Profit Calculator
Estimate your business result for a chosen period by separating revenue, variable costs and fixed costs. The calculator also shows your contribution margin and profit margin so you can see where your money is going.
How to use the calculator
- Choose a period, such as one month, one quarter, or one year, and use figures for the same period.
- Enter your total revenue for the period.
- Enter costs that change with sales or production as variable costs.
- Enter your other operating expenses as fixed/other costs.
- Click Calculate to see the estimated result and profitability indicators.
What does this calculator show?
A profit calculation compares the income generated by your business with the costs required to operate it. It helps you understand whether your planned or actual sales are enough to cover your costs and leave a positive result.
This calculator gives a simplified planning view. It is not the same as an official accounting profit and loss statement. Suomi.fi describes the profit and loss account as a calculation showing the income and expenses of a company during a period and the resulting profit or loss.
Revenue
Revenue is the sales income generated during the selected period. Use the same period for all inputs. For example, if you are calculating monthly profitability, enter monthly revenue and monthly costs.
Variable costs
Variable costs generally increase when you sell or produce more. Examples include materials, product purchases, packaging, payment fees and other costs directly related to sales.
Fixed / other operating costs
These are operating expenses that do not normally change directly with each individual sale. Examples can include rent, insurance, software subscriptions, accounting services, marketing costs and fixed personnel costs. Some expenses may be partly fixed and partly variable, so classify them in a practical and consistent way.
What the results mean
- Total costs: variable costs plus fixed/other operating costs.
- Contribution margin: revenue minus variable costs. It shows how much remains to cover fixed costs and profit.
- Contribution margin %: the contribution margin as a percentage of revenue.
- Estimated operating result: contribution margin minus fixed/other operating costs.
- Profit margin: estimated operating result divided by revenue.
Example
Suppose your business has €10,000 in revenue, €3,000 in variable costs and €4,000 in fixed/other operating costs. Total costs are €7,000, leaving an estimated operating result of €3,000. The contribution margin is €7,000, or 70% of revenue, and the estimated operating margin is 30%.
How to use the result
- Compare your expected result with your target income.
- Test different revenue levels to see how sales growth could affect profitability.
- Review variable costs if your contribution margin is too low.
- Review fixed costs if your business needs too much revenue just to cover overhead.
- Use the calculation as part of a business plan, budget or pricing discussion.
Profit is not the same as cash flow
A business can show a profit and still have cash-flow problems. For example, customers may not have paid their invoices yet, or the business may have large loan repayments or investment payments. Suomi.fi recommends monitoring cash flow separately because it shows whether the business has enough money available for payments.
Important limitations
This simplified calculator does not automatically account for VAT, income taxes, YEL, loan interest and repayments, depreciation, owner withdrawals, extraordinary items, inventory changes, unpaid invoices, or accounting-specific adjustments. For an official accounting result, use your bookkeeping and financial statements.
For a more complete profitability plan, also consider your target income, realistic sales volume, pricing, working hours and the amount of sales needed to cover your costs.
General information only. This calculator is intended for business planning and does not constitute legal, tax or accounting advice.