Sales & Profit Forecast Calculator
Model your future sales, revenue, and profit based on your growth rate.
Total Profit (After 12 Months)
£0
| Total Revenue | £0 |
|---|---|
| Total Costs (COGS) | £0 |
| Final Monthly Units Sold | 0 |
Growth Projection
How to Interpret Your Forecast
High Growth / Profit
Strong Model. Your unit economics (price vs. cost) are solid, and your growth compounds quickly. This is a very healthy sign.
Low Growth / Profit
Stable, but Slow. You are profitable, but growth is slow. Consider ways to increase your growth rate or improve your profit margin per unit.
Negative Profit (Loss)
Warning. Your Unit Cost is higher than your Unit Price. Growth will only make you *lose* money faster. You must fix your pricing or costs.
How This Forecast Works
This calculator uses a model of **compounding monthly growth** to project your business’s future performance. It assumes that your units sold will increase by a fixed percentage each month.
This method helps you visualize the powerful, exponential effect of a consistent growth rate and see how small changes in price, cost, or growth can lead to massive differences in your long-term profit.
Key Calculations
Units (Month 2) = Units (Month 1) * (1 + Growth Rate)
Revenue = Units Sold * Unit Price
Cost = Units Sold * Unit Cost
Profit = Total Revenue – Total Cost
Key Concepts
Understanding these terms is key:
- Unit Price: How much you sell one item for.
- Unit Cost (COGS): The *direct* cost to produce or acquire one item.
- Contribution Margin: (Price – Cost). This is the profit you make on each unit sold.
Frequently Asked Questions
What should I include in “Unit Cost”?
Only include your **Cost of Goods Sold (COGS)**. These are the *direct* costs of one unit.
• For a product: raw materials, manufacturing labor, packaging.
• For a service: software costs, direct labor for that client.
Do *not* include fixed costs like rent, marketing, or your own salary. This calculator is for modeling sales profit, not total business profit.
What is a “good” monthly growth rate?
This varies wildly. A venture-backed startup might aim for 10-20% *month-over-month* growth. A stable small business might be happy with 5-10% *year-over-year* growth (which is less than 1% per month).
A good starting point is to be realistic. A 5% monthly growth rate is strong and sustainable, doubling your business in about 14 months.