Business Budget Calculator — Profit & Cost Breakdown
Plan and analyse your business budget in seconds: enter your revenue, cost of goods sold, fixed and variable operating costs, and other expenses to see gross profit, operating profit, and your gross and operating margins in one clear breakdown.
Revenue minus all costs before interest and tax
30%
Op. marginCOGS
40%
Fixed costs
16%
Variable costs
10%
Other expenses
4%
Operating profit
30%
- 1
Gross profit
500,000 − 200,000 = 300,000 - 2
Total operating expenses
80,000 + 50,000 + 20,000 = 150,000 - 3
Operating profit (EBIT)
300,000 − 150,000 = 150,000
How does this calculator work?
Gross Profit = Revenue − COGS; Operating Profit = Gross Profit − all operating expenses. Enter revenue and cost categories to see both profit levels and your gross and operating margins instantly — the donut chart shows how revenue is divided between costs and profit.
Formula
How this is calculated
A business budget separates revenue from costs at two levels. Gross profit is what is left after subtracting the direct cost of goods sold (COGS) — raw materials, direct labour, manufacturing overhead — from revenue. Dividing by revenue gives the gross margin, which shows how efficiently the core product or service is produced.
Operating profit (also called EBIT — Earnings Before Interest and Taxes) further deducts the operating expenses needed to run the business: fixed costs that do not change with output (rent, salaries, insurance) and variable costs that scale with activity (marketing, commissions, utilities), plus any other expenses such as depreciation. The result shows how profitable the business is from its core operations before financing and tax decisions come into play.
This calculator does not model income tax, interest payments, or depreciation separately — those should be entered in the "other expenses" field if relevant. For a full income statement including tax and interest, a dedicated P&L tool is more appropriate.
Frequently asked questions
Gross profit deducts only direct production costs (COGS) from revenue. Operating profit goes further and also deducts operating expenses like rent, salaries, and marketing — showing how profitable the business is from its day-to-day operations before interest and taxes.
Operating margins vary widely by industry. Retail businesses often operate on 2–8%, software companies on 15–30%, and professional services on 10–20%. The margin matters less than whether it is improving over time and higher than your cost of capital.
Yes — add depreciation and amortisation to the "other expenses" field. Depreciation is a real operating cost that reduces profits even though it involves no cash outflow in the current period.
TG we-Calculate Editorial Team. (2026). Business Budget Calculator — Profit & Cost Breakdown [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/business-budget-calculator
TG we-Calculate Editorial Team. "Business Budget Calculator — Profit & Cost Breakdown." TG we-Calculate. 2026. https://we-calculate.com/calculator/business-budget-calculator.
TG we-Calculate Editorial Team, "Business Budget Calculator — Profit & Cost Breakdown," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/business-budget-calculator
@misc{wecalculate_business_budget_calculator, title = {Business Budget Calculator — Profit & Cost Breakdown}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/business-budget-calculator}}, year = {2026}, note = {TG we-Calculate} }
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