Business Plan Projections Calculator

A business plan projection turns three assumptions — a starting revenue figure, a growth rate, and a cost structure — into a three-year financial narrative a lender or investor can evaluate quickly. This calculator compounds Year 1 revenue by the same growth rate for two more years, applies cost of goods sold as a constant percentage of whatever revenue lands in each year, and grows operating expenses by a separate rate that typically runs slower than revenue growth as fixed costs like rent and core salaries scale less than proportionally with sales. Net income for each year is simply gross profit minus that year's operating expenses, and the model reports Year 3's net margin as a shorthand for how profitable the business becomes once growth compounds.

The honesty of any such projection depends entirely on how realistic the growth rate assumption is: real businesses rarely sustain one constant growth rate for three straight years, cost structures shift as a company scales, and this model has no room for one-time costs like equipment purchases, funding rounds, or seasonal swings in revenue. Use it to sanity-check the arithmetic behind a plan's headline numbers, not as a substitute for a bottoms-up forecast built from actual unit economics, hiring plans, and market research specific to the business.