Problem · Revenue without profit
More revenue. But where does the profit go?
Check how much is actually left after product, ad, delivery, and fixed costs. Usually a single cost block eats the growth, and it can be named.
Try it right away
Four numbers. One result.
Enter the values of a typical month. You can overwrite the sample numbers.
Result for the month
9.000 €
Net margin 11,3 % · Contribution margin after marketing 24.000 €
- Variable costs44.000 €
- Marketing12.000 €
- Fixed costs15.000 €
From 60.000 € of monthly revenue, the business covers its costs at this cost structure. Largest block: Variable costs.
Result = revenue − variable costs − marketing − fixed costs
Assumptions and limits
- Simplified calculation before taxes, interest, and depreciation. It does not replace your accountant's monthly report.
- Returns belong in revenue (net) or in variable costs, not both.
- Profit does not equal liquidity: payment terms and stock purchases shift when money flows.
Your entries stay in this browser. Nothing is saved or sent.
How you'll notice
The growth is visible. Not in the account.
- Revenue is above last year, the account balance isn't.
- Every new campaign brings orders, but nobody can say what an order earns.
- The BWA arrives six weeks later and only explains that it happened.
Understand the causes
Four reasons why growth brings in nothing.
- 01
The variable margin is too thin
- How you'll notice
- More orders raise revenue, but barely the contribution margin.
- Why it happens
- Purchasing, shipping, payment fees, and returns eat most of the price before advertising and fixed costs.
- What helps
- Calculate contribution margin per product and change prices or terms for the weakest items first.
- Limit
- With very few products, a spreadsheet is enough; a tool pays off only with many variants.
- 02
Growth is bought with ads
- How you'll notice
- Revenue rises in step with the ad budget.
- Why it happens
- New customers cost more than their first order brings in. A good ROAS hides this because it ignores costs after the click.
- What helps
- Know the break-even ROAS per product and stop campaigns below it or aim them at repeat buyers.
- Limit
- When customers often buy again, the first order can lose money, as long as it's measured.
- 03
Fixed costs are growing faster than contribution margin
- How you'll notice
- New hires, tools and office space came with growth, but profit stayed the same.
- Why it happens
- Fixed costs are built for expected revenue, not for the contribution margin you've earned.
- What helps
- Hold fixed costs against break-even revenue: every new fixed cost needs the revenue that carries it.
- Limit
- Investing in growth isn't a mistake, as long as it's clear when it starts to pay for itself.
- 04
The numbers come too late
- How you'll notice
- Problems only show up in the monthly financial report or at year-end close.
- Why it happens
- Costs sit separately in accounting, the shop and ad accounts, and are only combined after the fact.
- What helps
- Introduce a monthly calculation like the one above, with the same four numbers every month.
- Limit
- For tax and balance sheet, accounting stays the source; this calculation steers, it doesn't do the books.
Ways to solve it
What you need, depends on the size.
| Way | Enough if | Limit |
|---|---|---|
| Monthly bill in a spreadsheet | You have few products or services and pull the numbers together yourself. | Manual work, no values per product, quickly outdated. |
| Discuss the BWA with the tax advisor | You want to keep an eye on taxes and the balance sheet. | Arrives weeks later and shows no values per product or campaign. |
| Specialized profit tool for the shop | You sell only through one shop and only need shop metrics. | Another tool with its own copy of the data. |
| Peak One | You want to see margin, ad costs, and liquidity on the same products and numbers. | Needs clean cost data; accounting and taxes stay with your accounting tool. |
Peak One in action
From the question to the decision.
- TriggerWhy is profit what it is?
- 01 · MetricSignalProfit Bridge shows which cost blocks sit between revenue and profit.
- 02 · ProductUnderstandingPeak Products calculates the contribution margin per product and variant.
- 03 · ScenarioDecisionMargin Scenarios plays through price and cost changes before you make them.
- 04 · TaskActionThe price change becomes a task in Peak Board, with an owner and a date.
The apps for it
Available in Peak One.
Three steps
Start today. Even without software.
- 01 / 03
Create invoice
Enter last month's revenue, variable costs, marketing, and fixed costs in the calculation above.
- 02 / 03
Name the biggest block
Tackle the cost block with the largest share of revenue first, not all at once.
- 03 / 03
Repeat monthly
Check the same four numbers every month on the same date so changes stand out.
Frequently asked questions
Briefly answered.
What is the difference between profit and contribution margin?
Contribution margin is what's left after variable costs. Profit only arises once the contribution margin has also paid the fixed costs.
Why does revenue rise but the account balance doesn't?
Either too little is left after all costs, or the money is tied up in stock and open invoices. The calculation above answers the first question, a liquidity check the second.
Does Peak One replace my bookkeeping?
No. Peak One manages margin and liquidity day to day. Bookkeeping, taxes and year-end close stay with your accounting tool and your tax advisor.
Keep exploring
What's included.
- FunctionCash flow & runwayA clear cash picture from rough numbers, with runway and cost blocks.View
- FunctionMargin & contribution marginContribution margin per product and variant, with scenarios and inventory.View
- Software categoryCash flow softwareSee what comes in, what goes out and how long it lasts.View
- Software categoryContribution margin softwareKnow what's left per product after all variable costs.View
- ProblemGood ROAS without profitThe campaigns look good, but after all costs nothing is left.View
- ProblemNo overview of liquidityYou're not sure how long the money in your account will last.View
✦ A Peak principle
Cash is time. Whoever sees them decides more calmly.
Overview first, then action
More problems
Typical bottlenecks in growing companies, each with a tool you can try right away, the causes, and the path Peak One provides for it.
Solve it once. The rest follows.
More revenue, but hardly anything is left at the end of the month. Sign in with Google and see your company in one place.
Free plan · Sign in with Google · set up in about two minutes