What profit metrics can ProfitWise calculate?

Updated

ProfitWise's Quick Profit Calculator returns six figures from four inputs: estimated net profit, revenue, cost of goods, gross profit, net margin, break-even units, and VAT collected. You enter selling price, product cost, units sold, and business expenses — then optionally enable VAT and set a rate. The results update as you change the numbers, so you can test a price or cost before committing to it. The full app extends the same logic to orders, inventory, reports, and multi-currency work.

The metrics and what each one tells you

Metric What it shows Where it comes from
Estimated Net Profit What's left after product cost and operating expenses Selling price × units − cost of goods − expenses
Revenue Total sales value for the estimate Selling price × units sold
Cost of Goods Direct cost of the units sold Product cost × units sold
Gross Profit Revenue minus cost of goods, before expenses Revenue − cost of goods
Net Margin Profit as a share of revenue Net profit ÷ revenue
Break-even Units How many units you must sell to cover costs Derived from price, cost, and expenses
VAT Collected Tax amount when the selling price is VAT-inclusive Selling price × units at the VAT rate

The page's own worked example: a BHD 12 selling price, BHD 5 product cost, 100 units, and BHD 200 in expenses produce BHD 500.000 net profit, BHD 1,200.000 revenue, BHD 500.000 cost of goods, BHD 700.000 gross profit, a 41.7% net margin, and 29 break-even units. ProfitWise labels 41.7% a "healthy margin" in that scenario.

How VAT changes the numbers

VAT is off by default. When you enable it, you set a rate and tell ProfitWise whether the entered selling price already includes VAT. In the example above, the VAT rate is 0%, so VAT collected is BHD 0.000. If you enter a VAT-inclusive price at a non-zero rate, the calculator separates the tax portion from the revenue rather than treating the full selling price as sales income — which is why the toggle matters for reading net profit correctly.

What the calculator does not cover

The Quick Profit Calculator is a single-scenario estimator. It does not model per-order pricing, stock movements, or period comparisons — those live in the full app's orders, inventory, and reports sections. Reports let you switch between daily, monthly, and yearly views while keeping currencies and periods separate, so you can compare performance without mixing them. If your question is "what will this product earn me at this price," the calculator answers it; if it's "how did last quarter actually go," you need the reports side.

Reading the result before you decide

Two numbers are worth checking first. Net margin tells you whether the price covers both direct and operating costs at your current volume. Break-even units tells you the volume floor — if you expect to sell fewer than that, the scenario loses money regardless of margin. Adjust units sold downward and watch break-even units stay fixed while net profit falls; that gap is the practical signal for whether a price is viable.