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Primary formula: operating profit = revenue − variable costs − fixed costs − one-off costs
Duc Nguyen X.By Duc Nguyen X.· Founder, Margin101Last reviewed: View update historyMethodology

Educational only: Business decision support, not accounting, tax or legal advice.

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Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Owners building a practical 12-month operating-profit plan before setting targets.

Outputs

Annual revenue, gross contribution, operating profit, cumulative break-even month and target action gap across three scenarios.

Start here

Enter one month at a time, keep revenue and cost classifications consistent, then compare base, upside and downside assumptions.

Use a different tool when: Do not use this to identify a dated cash-buffer breach and peak funding gap; use Cash Runway Planner for that decision. Use this tool to compare base, upside and downside monthly budgets to identify annual operating profit, cumulative break-even and the action gap.

Profit & break-even

Business Budget & Profit Forecast: annual revenue

Annual revenue, gross contribution, operating profit, cumulative break-even month and target action gap across three scenarios.

Amounts use the same currency as your inputs. No currency conversion is performed.

Monthly budget assumptions

Use one currency and tax basis throughout. This is an accrual-style profit plan, not a cash-flow forecast.

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Profit-plan result

Annual operating view on the entered tax basis.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Base annual operating profit223,548.00
Base annual revenue939,690.00
Base annual gross contribution523,548.00
Budget variance to target103,548.00
Action gap to target0.00
Base cumulative break-evenMonth 2
Upside annual operating profit299,272.74
Downside annual operating profit77,176.68

Profit does not represent bank cash. Use a cash-flow forecast for receipt and payment timing.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Base annual operating profit

Monthly operating profitrevenue − variable costs − fixed costs − one-off costs223,548/year
Annual operating profitsum monthly operating profit223,548/year
Result223,548.00

Sum of monthly gross contribution less fixed and one-off operating costs in the base scenario on one currency and tax basis. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Monthly operating profitMonthly Rows
12
Annual operating profitMonthly Rows
12

Base annual revenue

Monthly revenue(units × price + other revenue) × seasonality × (1 + scenario revenue change)939,690/year
Annual revenuesum monthly revenue939,690/year
Result939,690.00

Sum of the twelve monthly revenue rows after seasonality. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Monthly revenueMonths
12
Annual revenueMonthly Rows
12

Base annual gross contribution

Monthly revenue(units × price + other revenue) × seasonality × (1 + scenario revenue change)939,690/year
Monthly variable costs(units × variable cost per unit + other variable costs) × seasonality × (1 + scenario variable-cost change)416,142/year
Monthly gross contributionmonthly revenue − monthly variable costs523,548/year
Annual gross contributionsum monthly gross contribution523,548/year
Result523,548.00

Sum of monthly revenue less monthly variable costs, including other revenue and other variable costs. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Monthly revenueMonths
12
Monthly variable costsMonths
12
Monthly gross contributionMonthly Rows
12
Annual gross contributionMonthly Rows
12

Budget variance to target

Annual operating profitsum monthly operating profit223,548/year
Budget variance to targetannual operating profit − target annual profit103,548/year
Result103,548.00

Annual operating profit less the entered target; a negative value is a shortfall. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Annual operating profitMonthly Rows
12
Budget variance to targetTarget Annual Profit
120,000
Budget variance to targetAnnual Operating Profit
223,548

Action gap to target

Annual operating profitsum monthly operating profit223,548/year
Action gapmax(0, target annual profit − annual operating profit)0/year
Result0.00

The positive shortfall between target annual profit and base annual operating profit. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Annual operating profitMonthly Rows
12
Action gapTarget Annual Profit
120,000
Action gapAnnual Operating Profit
223,548

Base cumulative break-even

Monthly operating profitrevenue − variable costs − fixed costs − one-off costs223,548/year
Cumulative operating profitrunning sum of monthly operating profit223,548.00
Cumulative break-even monthfirst month where cumulative operating profit ≥ 02 month number
ResultMonth 2

The first month in which cumulative operating profit is zero or positive, or unavailable when it is not reached within the plan. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Monthly operating profitMonthly Rows
12
Cumulative operating profitMonthly Rows
12
Cumulative break-even monthMonthly Rows
12

Upside annual operating profit

Scenario adjustmentapply scenario-specific revenue, variable-cost and fixed-cost changesupside
Monthly operating profitrevenue − variable costs − fixed costs − one-off costs223,548/year
Annual operating profitsum monthly operating profit223,548/year
Result299,272.74

Annual operating profit after the entered upside revenue and cost changes. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Scenario adjustmentUpside Revenue Change
0.1
Scenario adjustmentDownside Revenue Change
-0.12
Monthly operating profitMonthly Rows
12
Annual operating profitMonthly Rows
12

Downside annual operating profit

Scenario adjustmentapply scenario-specific revenue, variable-cost and fixed-cost changesupside
Monthly operating profitrevenue − variable costs − fixed costs − one-off costs223,548/year
Annual operating profitsum monthly operating profit223,548/year
Result77,176.68

Annual operating profit after the entered downside revenue and cost changes. Displayed to the nearest cent; the engine retains full precision.

Review the monthly profit-plan formulas →
Inputs used by these formula steps
Scenario adjustmentUpside Revenue Change
0.1
Scenario adjustmentDownside Revenue Change
-0.12
Monthly operating profitMonthly Rows
12
Annual operating profitMonthly Rows
12

Inputs used

Target annual operating profit
120,000
Upside revenue change
0.1
Downside revenue change
-0.12
Cumulative operating profit by month

Compare how quickly each scenario absorbs early losses and one-off costs.

BaseUpsideDownside
Cumulative break-even
0.00
Data for Cumulative operating profit by month
MonthBaseUpsideDownside
Jan (current)-2,595.002,121.90-12,097.20
Feb9,198.0019,003.74-10,435.32
Mar23,426.0038,699.88-6,979.84
Apr40,136.0061,264.68-1,696.24
May57,316.0084,373.083,932.56
Jun77,048.50110,431.6811,441.26
Jul97,274.50137,061.0619,312.42
Aug117,994.00164,261.2227,546.04
Sep137,054.00189,544.0234,555.64
Oct160,937.00220,401.0645,117.92
Nov189,737.00256,941.0659,301.92
Dec223,548.00299,272.7477,176.68

Record and compare this profit plan

Save an immutable result snapshot, change monthly assumptions, then compare the recalculated plan.

ScenarioResultDifference
Base annual operating profit223,548.00Baseline
Upside annual operating profit299,272.7475,724.74
Downside annual operating profit77,176.68-146,371.32

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Business-value assumption scenarios

Compare an earnings-multiple range with a separate reference range from your own evidence or adviser. The planner does not choose a method, normalise earnings, supply a multiple or produce a defensible business valuation. It is not a professional valuation, transaction price or tax value.

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Enter every required earnings, multiple and reference-range assumption, then calculate. Review the formulas.

Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/business-budget-profit-forecast/?sv=1&downsideFixedCostChange=0.03&downsideRevenueChange=-0.12&downsideVariableCostChange=0.06&m10Fixed=24000&m10OneOff=0&m10OtherRevenue=2500&m10OtherVariableCosts=800&m10Price=85&m10Seasonality=1.1&m10UnitCost=38&m10Units=890&m11Fixed=24000&m11OneOff=0&m11OtherRevenue=2500&m11OtherVariableCosts=800&m11Price=85&m11Seasonality=1.2&m11UnitCost=38&m11Units=900&m12Fixed=24000&m12OneOff=0&m12OtherRevenue=2500&m12OtherVariableCosts=800&m12Price=85&m12Seasonality=1.3&m12UnitCost=38&m12Units=910&m1Fixed=24000&m1OneOff=12000&m1OtherRevenue=2500&m1OtherVariableCosts=800&m1Price=85&m1Seasonality=0.85&m1UnitCost=38&m1Units=800&m2Fixed=24000&m2OneOff=0&m2OtherRevenue=2500&m2OtherVariableCosts=800&m2Price=85&m2Seasonality=0.9&m2UnitCost=38&m2Units=810&m3Fixed=24000&m3OneOff=0&m3OtherRevenue=2500&m3OtherVariableCosts=800&m3Price=85&m3Seasonality=0.95&m3UnitCost=38&m3Units=820&m4Fixed=24000&m4OneOff=0&m4OtherRevenue=2500&m4OtherVariableCosts=800&m4Price=85&m4Seasonality=1&m4UnitCost=38&m4Units=830&m5Fixed=24000&m5OneOff=0&m5OtherRevenue=2500&m5OtherVariableCosts=800&m5Price=85&m5Seasonality=1&m5UnitCost=38&m5Units=840&m6Fixed=24000&m6OneOff=0&m6OtherRevenue=2500&m6OtherVariableCosts=800&m6Price=85&m6Seasonality=1.05&m6UnitCost=38&m6Units=850&m7Fixed=24000&m7OneOff=0&m7OtherRevenue=2500&m7OtherVariableCosts=800&m7Price=85&m7Seasonality=1.05&m7UnitCost=38&m7Units=860&m8Fixed=24000&m8OneOff=0&m8OtherRevenue=2500&m8OtherVariableCosts=800&m8Price=85&m8Seasonality=1.05&m8UnitCost=38&m8Units=870&m9Fixed=24000&m9OneOff=0&m9OtherRevenue=2500&m9OtherVariableCosts=800&m9Price=85&m9Seasonality=1&m9UnitCost=38&m9Units=880&targetAnnualProfit=120000&upsideFixedCostChange=0.02&upsideRevenueChange=0.1&upsideVariableCostChange=0.03

ParameterMeaningUnitAllowed valuesPresenceDefault
downsideFixedCostChangedownside fixed cost change applied to the named scenario.decimal change from base scenario-0.95 to 5Required0.03
downsideRevenueChangedownside revenue change applied to the named scenario.decimal change from base scenario-0.95 to 5Required-0.12
downsideVariableCostChangedownside variable cost change applied to the named scenario.decimal change from base scenario-0.95 to 5Required0.06
m10Fixedmonth 10 fixed.currency units/month ex tax0 to 1000000000Required24000
m10OneOffmonth 10 one off.currency units/month ex tax0 to 1000000000Required0
m10OtherRevenuemonth 10 other revenue.currency units/month ex tax0 to 1000000000Required2500
m10OtherVariableCostsmonth 10 other variable costs.currency units/month ex tax0 to 1000000000Required800
m10Pricemonth 10 price.currency units/unit ex tax0 to 1000000000Required85
m10Seasonalitymonth 10 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1.1
m10UnitCostmonth 10 unit cost.currency units/unit ex tax0 to 1000000000Required38
m10Unitsmonth 10 units.whole units/month0 to 1000000000Required890
m11Fixedmonth 11 fixed.currency units/month ex tax0 to 1000000000Required24000
m11OneOffmonth 11 one off.currency units/month ex tax0 to 1000000000Required0
m11OtherRevenuemonth 11 other revenue.currency units/month ex tax0 to 1000000000Required2500
m11OtherVariableCostsmonth 11 other variable costs.currency units/month ex tax0 to 1000000000Required800
m11Pricemonth 11 price.currency units/unit ex tax0 to 1000000000Required85
m11Seasonalitymonth 11 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1.2
m11UnitCostmonth 11 unit cost.currency units/unit ex tax0 to 1000000000Required38
m11Unitsmonth 11 units.whole units/month0 to 1000000000Required900
m12Fixedmonth 12 fixed.currency units/month ex tax0 to 1000000000Required24000
m12OneOffmonth 12 one off.currency units/month ex tax0 to 1000000000Required0
m12OtherRevenuemonth 12 other revenue.currency units/month ex tax0 to 1000000000Required2500
m12OtherVariableCostsmonth 12 other variable costs.currency units/month ex tax0 to 1000000000Required800
m12Pricemonth 12 price.currency units/unit ex tax0 to 1000000000Required85
m12Seasonalitymonth 12 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1.3
m12UnitCostmonth 12 unit cost.currency units/unit ex tax0 to 1000000000Required38
m12Unitsmonth 12 units.whole units/month0 to 1000000000Required910
m1Fixedmonth 1 fixed.currency units/month ex tax0 to 1000000000Required24000
m1OneOffmonth 1 one off.currency units/month ex tax0 to 1000000000Required12000
m1OtherRevenuemonth 1 other revenue.currency units/month ex tax0 to 1000000000Required2500
m1OtherVariableCostsmonth 1 other variable costs.currency units/month ex tax0 to 1000000000Required800
m1Pricemonth 1 price.currency units/unit ex tax0 to 1000000000Required85
m1Seasonalitymonth 1 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required0.85
m1UnitCostmonth 1 unit cost.currency units/unit ex tax0 to 1000000000Required38
m1Unitsmonth 1 units.whole units/month0 to 1000000000Required800
m2Fixedmonth 2 fixed.currency units/month ex tax0 to 1000000000Required24000
m2OneOffmonth 2 one off.currency units/month ex tax0 to 1000000000Required0
m2OtherRevenuemonth 2 other revenue.currency units/month ex tax0 to 1000000000Required2500
m2OtherVariableCostsmonth 2 other variable costs.currency units/month ex tax0 to 1000000000Required800
m2Pricemonth 2 price.currency units/unit ex tax0 to 1000000000Required85
m2Seasonalitymonth 2 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required0.9
m2UnitCostmonth 2 unit cost.currency units/unit ex tax0 to 1000000000Required38
m2Unitsmonth 2 units.whole units/month0 to 1000000000Required810
m3Fixedmonth 3 fixed.currency units/month ex tax0 to 1000000000Required24000
m3OneOffmonth 3 one off.currency units/month ex tax0 to 1000000000Required0
m3OtherRevenuemonth 3 other revenue.currency units/month ex tax0 to 1000000000Required2500
m3OtherVariableCostsmonth 3 other variable costs.currency units/month ex tax0 to 1000000000Required800
m3Pricemonth 3 price.currency units/unit ex tax0 to 1000000000Required85
m3Seasonalitymonth 3 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required0.95
m3UnitCostmonth 3 unit cost.currency units/unit ex tax0 to 1000000000Required38
m3Unitsmonth 3 units.whole units/month0 to 1000000000Required820
m4Fixedmonth 4 fixed.currency units/month ex tax0 to 1000000000Required24000
m4OneOffmonth 4 one off.currency units/month ex tax0 to 1000000000Required0
m4OtherRevenuemonth 4 other revenue.currency units/month ex tax0 to 1000000000Required2500
m4OtherVariableCostsmonth 4 other variable costs.currency units/month ex tax0 to 1000000000Required800
m4Pricemonth 4 price.currency units/unit ex tax0 to 1000000000Required85
m4Seasonalitymonth 4 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1
m4UnitCostmonth 4 unit cost.currency units/unit ex tax0 to 1000000000Required38
m4Unitsmonth 4 units.whole units/month0 to 1000000000Required830
m5Fixedmonth 5 fixed.currency units/month ex tax0 to 1000000000Required24000
m5OneOffmonth 5 one off.currency units/month ex tax0 to 1000000000Required0
m5OtherRevenuemonth 5 other revenue.currency units/month ex tax0 to 1000000000Required2500
m5OtherVariableCostsmonth 5 other variable costs.currency units/month ex tax0 to 1000000000Required800
m5Pricemonth 5 price.currency units/unit ex tax0 to 1000000000Required85
m5Seasonalitymonth 5 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1
m5UnitCostmonth 5 unit cost.currency units/unit ex tax0 to 1000000000Required38
m5Unitsmonth 5 units.whole units/month0 to 1000000000Required840
m6Fixedmonth 6 fixed.currency units/month ex tax0 to 1000000000Required24000
m6OneOffmonth 6 one off.currency units/month ex tax0 to 1000000000Required0
m6OtherRevenuemonth 6 other revenue.currency units/month ex tax0 to 1000000000Required2500
m6OtherVariableCostsmonth 6 other variable costs.currency units/month ex tax0 to 1000000000Required800
m6Pricemonth 6 price.currency units/unit ex tax0 to 1000000000Required85
m6Seasonalitymonth 6 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1.05
m6UnitCostmonth 6 unit cost.currency units/unit ex tax0 to 1000000000Required38
m6Unitsmonth 6 units.whole units/month0 to 1000000000Required850
m7Fixedmonth 7 fixed.currency units/month ex tax0 to 1000000000Required24000
m7OneOffmonth 7 one off.currency units/month ex tax0 to 1000000000Required0
m7OtherRevenuemonth 7 other revenue.currency units/month ex tax0 to 1000000000Required2500
m7OtherVariableCostsmonth 7 other variable costs.currency units/month ex tax0 to 1000000000Required800
m7Pricemonth 7 price.currency units/unit ex tax0 to 1000000000Required85
m7Seasonalitymonth 7 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1.05
m7UnitCostmonth 7 unit cost.currency units/unit ex tax0 to 1000000000Required38
m7Unitsmonth 7 units.whole units/month0 to 1000000000Required860
m8Fixedmonth 8 fixed.currency units/month ex tax0 to 1000000000Required24000
m8OneOffmonth 8 one off.currency units/month ex tax0 to 1000000000Required0
m8OtherRevenuemonth 8 other revenue.currency units/month ex tax0 to 1000000000Required2500
m8OtherVariableCostsmonth 8 other variable costs.currency units/month ex tax0 to 1000000000Required800
m8Pricemonth 8 price.currency units/unit ex tax0 to 1000000000Required85
m8Seasonalitymonth 8 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1.05
m8UnitCostmonth 8 unit cost.currency units/unit ex tax0 to 1000000000Required38
m8Unitsmonth 8 units.whole units/month0 to 1000000000Required870
m9Fixedmonth 9 fixed.currency units/month ex tax0 to 1000000000Required24000
m9OneOffmonth 9 one off.currency units/month ex tax0 to 1000000000Required0
m9OtherRevenuemonth 9 other revenue.currency units/month ex tax0 to 1000000000Required2500
m9OtherVariableCostsmonth 9 other variable costs.currency units/month ex tax0 to 1000000000Required800
m9Pricemonth 9 price.currency units/unit ex tax0 to 1000000000Required85
m9Seasonalitymonth 9 seasonality multiplier.decimal multiplier of monthly volume0 to 10Required1
m9UnitCostmonth 9 unit cost.currency units/unit ex tax0 to 1000000000Required38
m9Unitsmonth 9 units.whole units/month0 to 1000000000Required880
targetAnnualProfitTarget annual operating profit for the budget.currency units/year0 to 1000000000Required120000
upsideFixedCostChangeupside fixed cost change applied to the named scenario.decimal change from base scenario-0.95 to 5Required0.02
upsideRevenueChangeupside revenue change applied to the named scenario.decimal change from base scenario-0.95 to 5Required0.1
upsideVariableCostChangeupside variable cost change applied to the named scenario.decimal change from base scenario-0.95 to 5Required0.03

Business Budget & Profit Forecast: annual revenue

Use the three scenarios to separate the operating-profit target from the assumptions that must change to reach it.

Formula summary

Primary formula
operating profit = revenue − variable costs − fixed costs − one-off costs

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Assign an owner and timing to the largest controllable revenue, variable-cost or fixed-cost gap in the base plan.

Stress-test the decision

Retest lower revenue and higher variable costs before treating the annual operating-profit result as a budget commitment.

When this estimate can be misleading

  • This is an operating-profit plan, not a cash-flow statement or accounting forecast.
  • It does not model payment timing, tax, financing, depreciation, working capital or balance-sheet movements.
  • Scenario changes are assumptions, not predictions of demand, cost inflation or business performance.
  • Use the three scenarios to separate the operating-profit target from the assumptions that must change to reach it.

Educational estimate, not advice. See all assumptions & limitations →

Related reading

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I compare base, upside and downside monthly budgets to identify annual operating profit, cumulative break-even and the action gap?

Assign an owner and timing to the largest controllable revenue, variable-cost or fixed-cost gap in the base plan.

Does Margin101 store my numbers?

Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.

Is this accounting advice?

No. It is educational planning support; verify the assumptions against your records and obtain qualified advice where appropriate.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.