| Metric | Formula |
|---|---|
| Gross Revenue | Price × Units Sold |
| Net Revenue | Gross Revenue − Discounts |
| Gross Profit | Net Revenue − COGS |
| Gross Margin % | (Gross Profit ÷ Revenue) × 100 |
| Net Profit | Gross Profit − Fixed Costs − Tax |
| MRR | Subscribers × Monthly Price |
| ARR | MRR × 12 |
Gross revenue is the starting point — it is your price multiplied by how many units you sell before any deductions. Net revenue is what you actually earn after removing refunds and discounts.
Gross profit tells you how much you keep after covering the direct cost to make or deliver your product. Gross margin tells you what percentage of each sale stays in your pocket. Use this gross profit calculator to go deeper on margins.
For subscription businesses, monthly recurring revenue (MRR) is the key metric. Multiply MRR by 12 to get your annual run-rate (ARR), which investors and operators use to measure growth.
A high churn rate shrinks revenue fast. Even 5% monthly churn means you lose more than half your subscriber base within a year. Once you know your revenue, use the net profit calculator to see what you actually take home after all costs.
How total revenue changes across common price points and unit volumes.
| Units Sold | $10/unit | $25/unit | $50/unit | $100/unit | $250/unit | $500/unit |
|---|
Formula: Gross Revenue = Price × Units. Currency shown as $.
What remains as gross profit at different cost-to-revenue ratios.
| Revenue | COGS 20% | COGS 30% | COGS 40% | COGS 50% | COGS 60% | COGS 70% |
|---|
Gross Profit = Revenue × (1 − COGS%). Highlighted cells show 50%+ margin.
Multiply monthly revenue by 12 to estimate your annual run-rate at different scales.
| Monthly Revenue | Quarterly | Semi-Annual | Annual Run-Rate | 3-Year Projection | 5-Year Projection |
|---|
Projections assume flat monthly revenue. Growth will increase these figures.
Monthly recurring revenue and annual recurring revenue across subscriber counts and plan prices.
| Subscribers | $9/mo MRR | $19/mo MRR | $29/mo MRR | $49/mo MRR | $99/mo MRR | ARR (at $29) |
|---|
MRR = subscribers × monthly price. ARR = MRR × 12.
Typical gross profit margins across major industries — use these to benchmark your own numbers.
| Industry | Typical Gross Margin | COGS Range | Notes |
|---|---|---|---|
| SaaS / Software | 70–85% | 15–30% | Hosting, support costs |
| Consulting / Services | 60–80% | 20–40% | Labor-driven |
| Digital Products | 65–90% | 10–35% | Low delivery cost |
| E-commerce / Retail | 20–50% | 50–80% | Product & shipping costs |
| Food & Beverage | 25–40% | 60–75% | Ingredients, waste |
| Manufacturing | 20–40% | 60–80% | Materials & labor |
| Healthcare | 30–60% | 40–70% | Varies by specialty |
| Media / Advertising | 50–70% | 30–50% | Content production |
| Wholesale | 15–25% | 75–85% | High volume, low margin |
| Real Estate | 20–45% | 55–80% | Commissions, property costs |
These are typical ranges. Margins vary significantly by company size, pricing model, and region. Always compare to your direct competitors.
How monthly revenue compounds at different annual growth rates starting from various baselines.
| Starting Monthly Rev | Year 1 | Year 2 (+20%) | Year 3 (+20%) | Year 4 (+20%) | Year 5 (+20%) |
|---|
Assumes 20% annual growth, compounded yearly. Actual growth depends on market, pricing, and retention.