formulas

• gross profit = revenue - cost of sales
• net profit = gross profit - expenses
• gross profit margin = (gross profit ÷ sales revenue) x 100
• net profit margin = ( net profit ÷ sales revenue ) x 100
• ARR= ( lifetime profit ÷ years the investment will last ) ÷ initial investment x 100
• variable costs = cost of one unit x quantity produced
• break even point in units = fixed costs ÷ (sales price - variable cost )
• break even in costs / revenue = break even point in units x sales price
• margin of safety = actual or budgeted sales - break even sales
• interest ( in loans ) in % = total repayment - borrowed amount ÷ borrowed amount x 100
• opening balance = closing balance of previous period
• closing balance = opening balance + net cash flow
• profit / loss = total revenue - total costs
• percentage growth = increased in size ÷ original size x 100