Finance equations

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Last updated 9:35 AM on 9/7/26

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1

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Gross profit

Sales revenue - Cost of goods sold

2

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Net profit

Gross profit - All expenses

3

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Gross profit margin

Gross profit / Sales revenue x100

4

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Net profit margin

Net profit / Sales revenue x100

5

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Breakeven

Sales price - Variable costs = Contribution

Fixed costs / Contribution

6

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Breakeven point sales value

(Selling price x Fixed costs) / Contribution

7

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Sales revenue

Selling price x Sales volume