Business Math Guides — Profit, Margin, Break-Even & CAGR
Master the essential business math formulas: calculate profit and margin, find your break-even point, set prices with markup, track growth with CAGR, and evaluate investments with payback period.
10
Guides
6
Calculators
4
FAQs
Business Math Guides & Formulas
How to Calculate Profit
Gross profit, net profit, and profit margin formulas with step-by-step examples for any business.
How to Calculate Gross Profit
Gross profit formula, gross margin benchmarks by industry, and how to improve your gross profit.
How to Calculate Net Income
Net income formula, income statement walkthrough, and the difference between gross and net profit.
Profit Margin Explained
Gross, operating, and net profit margin: what each means, how to calculate them, and industry benchmarks.
Profit vs Revenue: Key Differences
Why revenue and profit are not the same, and why a high-revenue business can still lose money.
Break-Even Calculation Guide
How to calculate your break-even point in units and dollars, with fixed costs, variable costs, and contribution margin.
How to Calculate Markup
Markup vs margin: the key difference, formulas, and how to set prices that protect your profit.
How to Calculate Commission
Commission formulas for flat rate, tiered, and split commission structures with real examples.
How to Calculate CAGR
Compound Annual Growth Rate formula, step-by-step calculation, and benchmarks by asset class.
How to Calculate Payback Period
Simple and discounted payback period formulas for evaluating investment and project returns.
Business Calculators
Profit Calculator
Calculate profit, margin, and markup instantly
ROI Calculator
Return on investment for any project or asset
Break-Even Calculator
Find the exact sales volume to cover all costs
Markup Calculator
Calculate selling price from cost and markup %
Commission Calculator
Calculate sales commission for any rate
Pricing Calculator
Set optimal prices based on cost and margin
Business Math Formulas Cheat Sheet
Gross Profit
Revenue − COGS
Net Profit
Revenue − All Expenses
Profit Margin
(Profit ÷ Revenue) × 100
Markup
(Profit ÷ Cost) × 100
Break-Even Units
Fixed Costs ÷ (Price − Variable Cost)
ROI
(Gain − Cost) ÷ Cost × 100
CAGR
(End ÷ Start)^(1/Years) − 1
Commission
Sale Amount × Commission Rate
Frequently Asked Questions
What is the difference between gross profit and net profit?
Gross profit = Revenue − Cost of Goods Sold (COGS). Net profit = Revenue − All Expenses (COGS + operating expenses + taxes + interest). Net profit is always lower than gross profit.
What is a good profit margin for a small business?
It varies by industry. Retail: 2–5%, restaurants: 3–9%, SaaS: 60–80%, consulting: 20–40%, e-commerce: 10–20%. Compare to your industry average, not a universal benchmark.
How do I calculate break-even point?
Break-even units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). For example: $10,000 fixed costs, $50 price, $30 variable cost → break-even = $10,000 ÷ $20 = 500 units.
What is CAGR and how is it calculated?
CAGR (Compound Annual Growth Rate) = (End Value ÷ Start Value)^(1/Years) − 1. For example: $10,000 growing to $16,105 in 5 years → CAGR = (16,105/10,000)^(1/5) − 1 = 10%.