Calculate basic monthly profit

Profit is simply money in minus money out. Knowing your basic monthly profit — even a rough number — tells you whether the business is actually working, instead of just feeling busy.

Do this

1. Add up all the money that came in this month (revenue).
2. Add up everything you spent to run the business (expenses).
3. Subtract expenses from revenue — that's your profit (or loss).
4. Write it down each month so you can watch the trend, not just one number.

The 1-Minute Profit Formula

Monthly Profit = Total Income − Total Expenses

Example: Income this month: $9,400 Expenses this month: − $7,100 ─────────────────────────────── Profit: $2,300

If the number is negative, you had a loss — that's useful to know early. Track it every month and look for the trend: is profit growing, flat, or shrinking?