Understanding Revenue, Expenses & Profit
Overview
The calculator uses a structured model with three categories: Revenue, Expenses, and Profit. Understanding how each is defined helps you get accurate results.
Revenue Group
The Revenue Group captures what you earn from each sale. On screen it appears as the predefined Total Item Price group - you cannot rename, delete, or add costs to it.
What counts as revenue (the Shipping Charged to Customer value defaults to $0.00, so set it if you want it reflected in revenue)::
| Platform | Revenue Items |
|---|---|
| Shopify, TikTok Shop, Amazon | Price + Shipping Charged to Customer |
| Faire | Wholesale Price + Shipping Charged to Customer |
Expense Groups
Expense Groups organize your costs into logical categories. Some are predefined; others can be created by you.
Predefined Expense Groups:
- Total COGS - your cost of goods
- Total Fulfillment Costs - labor, packaging, shipping, customer service, handling
- Total Platform Fees - marketplace and payment fees specific to each platform
- Total Tax - applicable taxes
- No Expense Group - miscellaneous costs that don't fit elsewhere
Custom Expense Groups: You can create, rename, and delete your own groups. If you delete a custom group, any Expense Costs assigned to it move to "No Expense Group" unless you also delete them.
Profit Group
Profit is automatically calculated and shown in the Calculations columns (Estimated Profit and Profit Margin). You cannot edit, rename, or delete it.
Formula
Profit ($) = Total Item Price – Total Expense Costs
Profit (%) = (Profit $ / Total Item Price) × 100
Profit % is displayed rounded to one decimal place (for example, 12.3%).
