Model Profit, Pricing, and Markup in Seconds

Purpose: Compare revenue against cost to see profit dollars and percent. Use it to benchmark products and spot margin drift before it becomes a pricing problem.

Why it is useful: Highlights how pricing or cost shifts change profitability across quotes or product lines. It makes tradeoffs visible when you adjust discounts or vendor rates.

Purpose: Find the unit volume required to cover fixed costs. It frames your sales target in concrete terms for a launch or new quote.

Why it is useful: Sets realistic sales targets and shows how price or cost changes affect risk. It also helps you stress test volume assumptions before committing to inventory.

Purpose: Back into the minimum price needed to hit a target margin. It gives you a floor price for quotes and renewals.

Why it is useful: Protects margin on quotes and helps evaluate price sensitivity. It also exposes when discounts or cost creep push you below target.

Purpose: Translate markup percent into selling price and margin dollars. It is a quick way to price when you have a known cost base.

Why it is useful: Fast cost-plus pricing when vendors or labor costs shift. It also shows the dollar impact of small markup changes.

Purpose: Estimate revenue per customer based on spend, frequency, and retention. It provides a simple model for lifetime economics.

Why it is useful: Guides acquisition budgets and highlights which cohorts are worth investing in. It also helps compare segments when churn differs.

Purpose: Measure how existing customer revenue grows after churn and expansion. It captures retention and upsell performance in one number.

Why it is useful: Captures customer health and product fit without new logo sales. It also shows whether growth is sustainable inside the base.

Purpose: Estimate how many months of cash remain at current burn. It translates cash balance into time.

Why it is useful: Drives timing for fundraising, hiring, or cost reductions. It also clarifies how sensitive runway is to spending changes.

Purpose: See total profit dollars before operating expenses. It pairs revenue scale with cost discipline.

Why it is useful: Pairs with margin to show the absolute profit your volume generates. It also signals when growth is not creating enough gross dollars.

Purpose: Show dollars left per unit after variable costs. It isolates the profit that covers fixed costs.

Why it is useful: Makes unit economics clear and highlights price sensitivity. It also helps compare products with different cost structures.

Purpose: Express contribution margin as a percent of price. It normalizes unit economics across products.

Why it is useful: Converts fixed costs into revenue targets for planning. It also makes break-even revenue easier to communicate.

Purpose: Translate fixed costs into a revenue goal. It shows the sales threshold needed to cover overhead.

Why it is useful: Gives a revenue target that is easier to communicate than unit counts. It also links pricing strategy to the break-even line.

Purpose: Calculate gross margin using unit price and cost. It provides a quick health check on a quote.

Why it is useful: Validates pricing against margin targets before you quote. It also reveals if cost changes are eroding profitability.

Purpose: Compute markup percent from cost and price. It keeps pricing consistent across different cost bases.

Why it is useful: Keeps markup policies consistent when vendor costs change. It also helps compare pricing across vendors or SKUs.

Purpose: Convert revenue LTV into gross margin dollars. It focuses on profit rather than top-line only.

Why it is useful: Aligns acquisition spend with profit, not just revenue. It also shows whether margin improvements extend customer value.

Purpose: Estimate LTV for recurring revenue businesses. It connects churn, margin, and ARPA into one view.

Why it is useful: Shows how churn and margin directly impact lifetime value. It also helps model retention improvements and pricing changes.

Purpose: Measure revenue retention excluding expansion. It isolates churn and contraction from upsells.

Why it is useful: Highlights churn health before upsell offsets losses. It also provides a baseline for account management performance.

Purpose: Isolate upsell growth inside the existing base. It shows how much growth comes from expansion.

Why it is useful: Shows how much growth comes from existing accounts. It also helps forecast growth without relying on new customer acquisition.

Purpose: Calculate monthly cash burn after inflows. It reflects the true cash drain of the business.

Why it is useful: Provides a more accurate runway input than gross spend. It also highlights whether revenue is covering core costs.

Purpose: Estimate runway using net burn instead of gross burn. It accounts for incoming cash while spending continues.

Why it is useful: Reflects the cash runway after revenue offsets expenses. It also shows how improved collections extend time.