Learn Business Finance

Plain-English guides with worked examples.

Gross margin shows how much of each rupee of sales is left after the direct cost of making or buying what you sold.

EBITDA measures operating earnings before interest, tax, depreciation and amortization.

Revenue is the money you bring in. Profit is what you keep after costs.

Gross profit subtracts only direct costs. Net profit subtracts everything.

Business valuation estimates what a business is worth, using methods like earnings multiples.

ROI measures the return on an investment as a percentage of what you put in.

COGS is the direct cost of the goods you sold in a period.

Break-even is the point where your sales exactly cover your total costs.