real-revenue-calculator

To calculate Real Revenue for Profit First TAP allocations, subtract your Materials Cost and Subcontractor Cost from your Total Revenue. This skill automates that computation and determines if it should be your allocation base.

In Profit First, Real Revenue is Total Revenue minus Materials and Subcontractors, while Total Revenue is your gross income. This skill identifies which base to use for TAP lookups based on the 25% threshold.

You decide by applying the 25% Materials & Subs threshold to your Total Revenue. If your costs exceed this limit, this skill recommends using Real Revenue; otherwise, it advises using Total Revenue for your TAP lookup.

You need to provide Total Revenue, Materials Cost, and Subcontractor Cost. Using these three inputs, the skill applies the 25% threshold and outputs the recommended TAP base and computed Real Revenue.

You should not use Real Revenue when your combined Materials and Subcontractor costs fall below the 25% threshold of Total Revenue. In that scenario, this skill recommends using Total Revenue for your TAP allocations.