Business Budget Calculator

Finance

Plan a simple operating budget for your business. Enter expected revenue, cost of goods sold (COGS), and operating expenses to see gross profit, operating profit, and your net profit margin.

Formula

Gross Profit = Revenue − COGS; Operating Profit = Gross Profit − Operating Expenses; Net Margin = Operating Profit ÷ Revenue × 100
  • Gross profit is revenue minus the direct cost of producing your goods or services (COGS).
  • Operating profit subtracts overheads — rent, salaries, marketing and other operating expenses — from gross profit.
  • Gross margin = gross profit ÷ revenue; net (operating) margin = operating profit ÷ revenue.
  • Margins let you compare profitability regardless of business size.
  • This is a simplified budget; it excludes interest, tax, and depreciation that appear on a full income statement.

Revenue 100k, COGS 40k, opex 35k

Inputs
  • Revenue: 100000
  • Cost of Goods Sold (COGS): 40000
  • Operating Expenses: 35000

Gross profit = 100,000 − 40,000 = 60,000 (60% margin). Operating profit = 60,000 − 35,000 = 25,000, a 25% net margin.

Frequently asked questions

What is a business budget?
It's a plan of expected revenue and costs over a period, used to forecast profit and keep spending in check.
What's the difference between COGS and operating expenses?
COGS is the direct cost of making your product or service; operating expenses are overheads like rent, salaries, and marketing.
What is gross profit?
Gross profit is revenue minus COGS — what's left to cover overheads before operating expenses are taken out.
What is a good net profit margin?
It varies by industry, but many small businesses target a net margin of 10% or more. Compare against peers in your sector.
Does this include tax and interest?
No. This is a simplified operating budget. A full income statement also subtracts interest, tax, and depreciation.