Business Idea Profitability Calculator

Check a business idea adds up before you spend money on it.

πŸ’‘

Business Idea Profitability Calculator

Enter expected customers, price, variable cost, fixed costs and startup spend.

Monthly profit
β€”
Enter values above
Contribution per sale
β€”
Break-even customers
β€”
Payback period (months)
β€”
Annual profit
β€”
Profit margin
β€”

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Expected customers per month200
Average price per sale ($)40
Variable cost per sale ($)15
Monthly fixed costs ($)3000
Startup investment ($)10000
ResultValue
Monthly profit$2,000
Contribution per sale$25.00
Break-even customers120
Payback period (months)5
Annual profit$24,000
Profit margin25.00%

Values shown are produced by this page in your browser; change any input to update them.

How to use the Business Idea Profitability Calculator

  1. Expected customers per month β€” default 200
  2. Average price per sale ($) β€” default 40
  3. Variable cost per sale ($) β€” default 15
  4. Monthly fixed costs ($) β€” default 3000
  5. Startup investment ($) β€” default 10000
  6. Press Calculate to update the results instantly.

Frequently asked questions

Contribution is price minus variable cost β€” the money each sale leaves towards fixed costs. It determines how many sales you need to break even, which is the single most useful number when testing an idea.
Start from a channel you can actually control β€” footfall, ad impressions times a realistic conversion rate, or outreach you can do in a week. Optimistic top-down market sizes hide weak unit economics.
Compare it against your other options. Anything beyond about 24 months on a small business means the idea must grow substantially or the startup spend must come down.

Sources & references