Small Business Profitability Calculator
:root {
–primary-blue: #004a99;
–success-green: #28a745;
–light-background: #f8f9fa;
–border-color: #dee2e6;
–text-color: #333;
–label-color: #555;
}
body {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
color: var(–text-color);
background-color: var(–light-background);
margin: 0;
padding: 20px;
}
.loan-calc-container {
max-width: 800px;
margin: 30px auto;
background-color: #fff;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0, 0, 0, 0.1);
overflow: hidden;
display: flex;
flex-wrap: wrap;
}
.calculator-section {
padding: 30px;
box-sizing: border-box;
}
.calculator-section.inputs {
flex: 1;
min-width: 300px;
border-right: 1px solid var(–border-color);
}
.calculator-section.results {
flex: 1;
min-width: 300px;
background-color: var(–primary-blue);
color: #fff;
text-align: center;
}
h1, h2, h3 {
color: var(–primary-blue);
margin-bottom: 20px;
}
.input-group {
margin-bottom: 20px;
text-align: left;
}
.input-group label {
display: block;
margin-bottom: 8px;
font-weight: 500;
color: var(–label-color);
}
.input-group input[type="number"],
.input-group input[type="text"] {
width: calc(100% – 20px);
padding: 10px;
border: 1px solid var(–border-color);
border-radius: 4px;
font-size: 1rem;
box-sizing: border-box;
}
.input-group input[type="number"]:focus,
.input-group input[type="text"]:focus {
outline: none;
border-color: var(–primary-blue);
box-shadow: 0 0 0 3px rgba(0, 74, 153, 0.2);
}
.btn-calculate {
display: block;
width: 100%;
padding: 12px 20px;
background-color: var(–success-green);
color: white;
border: none;
border-radius: 5px;
font-size: 1.1rem;
font-weight: 600;
cursor: pointer;
transition: background-color 0.3s ease;
margin-top: 30px;
}
.btn-calculate:hover {
background-color: #218838;
}
.result-display {
margin-top: 30px;
padding: 20px;
background-color: rgba(255, 255, 255, 0.15);
border-radius: 5px;
}
.result-display h3 {
color: #fff;
margin-bottom: 15px;
font-size: 1.3rem;
}
.result-value {
font-size: 2.2rem;
font-weight: 700;
color: var(–success-green);
margin-top: 10px;
}
.result-unit {
font-size: 1rem;
color: rgba(255, 255, 255, 0.9);
margin-top: 5px;
}
.explanation-section {
margin-top: 40px;
padding: 30px;
background-color: #fff;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0, 0, 0, 0.05);
}
.explanation-section h2 {
color: var(–primary-blue);
border-bottom: 2px solid var(–primary-blue);
padding-bottom: 10px;
}
.explanation-section h3 {
color: var(–primary-blue);
margin-top: 25px;
margin-bottom: 15px;
}
.explanation-section p, .explanation-section ul {
margin-bottom: 15px;
color: var(–text-color);
}
.explanation-section ul li {
margin-bottom: 8px;
}
.formula-example {
background-color: var(–light-background);
padding: 15px;
border-left: 4px solid var(–primary-blue);
margin: 20px 0;
font-family: Consolas, Monaco, 'Andale Mono', 'Ubuntu Mono', monospace;
font-size: 0.95rem;
white-space: pre-wrap;
word-wrap: break-word;
}
@media (max-width: 768px) {
.loan-calc-container {
flex-direction: column;
}
.calculator-section.inputs {
border-right: none;
border-bottom: 1px solid var(–border-color);
}
}
Your Estimated Profit
Monthly Net Profit
—
Per Month
Monthly Profit Margin
—
%
Understanding Your Small Business Profitability
This calculator helps you estimate your business's profitability by breaking down key financial components. Understanding these figures is crucial for making informed business decisions, seeking funding, and planning for growth.
Key Metrics Explained
- Estimated Monthly Revenue: This is the total income your business expects to generate from sales of products or services within a month, before any expenses are deducted.
- Cost of Goods Sold (COGS) / Direct Costs: These are the direct costs attributable to the production or purchase of the goods or services sold by your company. For a retail business, this is what you paid for the inventory. For a service business, it might include direct labor or materials directly tied to delivering the service.
- Monthly Operating Expenses: These are the costs incurred in the normal day-to-day running of your business, excluding COGS. This includes items like rent, utilities, marketing, salaries (for administrative staff), insurance, etc.
- Monthly Fixed Costs: These are expenses that do not change significantly with the level of goods or services produced or sold. Examples include rent, salaries, loan payments, and insurance premiums. While grouped under operating expenses in a broader sense, isolating them can help in understanding break-even points.
How the Calculation Works
The calculator uses standard accounting principles to determine your net profit and profit margin.
Use Cases and Importance
- Performance Monitoring: Regularly track your profitability to understand business health over time.
- Pricing Strategy: Use profit figures to inform your pricing to ensure you cover costs and achieve desired margins.
- Cost Management: Identify areas where expenses might be too high compared to revenue.
- Budgeting and Forecasting: Create realistic financial projections based on current profitability.
- Investor/Lender Communication: Provide clear, data-driven insights into your business's financial performance when seeking investment or loans.
By utilizing this calculator, you gain a clearer picture of your small business's financial standing, empowering you to make strategic decisions for sustainable success.
function calculateProfitability() {
var monthlyRevenueInput = document.getElementById("monthlyRevenue");
var costOfGoodsSoldInput = document.getElementById("costOfGoodsSold");
var monthlyOperatingExpensesInput = document.getElementById("monthlyOperatingExpenses");
var monthlyFixedCostsInput = document.getElementById("monthlyFixedCosts");
var monthlyRevenue = parseFloat(monthlyRevenueInput.value);
var costOfGoodsSold = parseFloat(costOfGoodsSoldInput.value);
var monthlyOperatingExpenses = parseFloat(monthlyOperatingExpensesInput.value);
var monthlyFixedCosts = parseFloat(monthlyFixedCostsInput.value);
var netProfitResultDiv = document.getElementById("netProfitResult");
var profitMarginResultDiv = document.getElementById("profitMarginResult");
// Clear previous results
netProfitResultDiv.textContent = "–";
profitMarginResultDiv.textContent = "–";
// Input validation
if (isNaN(monthlyRevenue) || isNaN(costOfGoodsSold) || isNaN(monthlyOperatingExpenses) || isNaN(monthlyFixedCosts)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (monthlyRevenue < 0 || costOfGoodsSold < 0 || monthlyOperatingExpenses < 0 || monthlyFixedCosts 0) {
profitMargin = (netProfit / monthlyRevenue) * 100;
}
// Display results – formatted to 2 decimal places for currency/percentage
netProfitResultDiv.textContent = "$" + netProfit.toFixed(2);
profitMarginResultDiv.textContent = profitMargin.toFixed(2);
}