Article 9: How to Calculate Your Profit Margins Accurately

Here’s the deal: you might feel like money’s coming in, but if you don’t stop and check what’s really left over, you’re guessing, sometimes losing, without even knowing it. It doesn’t matter if you’re selling a service, a product, or doing gigs; you need to know what you actually keep each time you get paid.

So, let’s make it dead simple. When money hits your hand, that’s not all yours to enjoy. Some of it needs to cover all the stuff it took to make that cash happen: your materials, your time, shipping, apps, whatever. That’s your “spend.”

If you just look at the money that came in but ignore the money you had to spend to get there, you can trick yourself into thinking you’re killing it, even if most of it is leaking away. What matters is what you have left after you’ve taken care of those costs. That’s your real win.

If you sell something for $20 but it cost you $15 to make and ship, you only really “won” $5. So always ask: after everything I had to do, or pay, to make this sale happen, what’s actually staying in my pocket?

Master that thinking, and you’ll instantly spot whether something’s actually worth your time, or just keeping you busy. Want to know how the real players spot problems or hidden wins in their hustle?Pro tier shows you how to see the story behind your numbers and make your business stronger, fast.