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How to use
- Enter Revenue.
- Enter Business expenses.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Pre-tax profit = revenue − expenses; margin = profit ÷ revenue × 100
Example
Revenue of 100,000 with 25,000 business expenses gives 75,000 pre-tax profit and an arithmetic margin of 75%.
Important notes
This is not final personal take-home income; taxes, retirement, insurance and owner draws may remain, so use it as a business-level measure.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Profit | 100000 − 25000 | 75,000 |
| Margin | 75000 ÷ 100000 × 100 | 75 % |
Frequently asked questions
Is the amount I pay myself an expense?
That depends on business structure and accounting treatment; this calculator does not determine legal or tax treatment.
Is the result a mandatory client price?
No. It is a planning result from your inputs; final pricing depends on scope, market, contract, taxes and risk.
Should I use monthly or annual figures?
Keep all inputs on the same period so annual income is not mixed with monthly hours or expenses.