> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sellysoftware.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Revenue & Profit Metrics

> Every metric on the Performance page explained.

## The Key Metrics

| Metric           | What it shows                                                           |
| ---------------- | ----------------------------------------------------------------------- |
| **Revenue**      | Total sale price of all completed sales in the selected period          |
| **Gross Profit** | Revenue minus cost of goods sold                                        |
| **Net Profit**   | Gross profit minus all logged expenses for the period                   |
| **Units Sold**   | Number of individual units sold                                         |
| **Avg. Margin**  | Average gross profit margin across all sales — (Profit ÷ Revenue) × 100 |

## Revenue

Revenue is the total of all **sale prices** across every completed sale in the selected period. It doesn't factor in your costs — it's the raw top-line number.

Revenue tells you the size of your business. Profit tells you how healthy it is.

## Gross Profit

Gross profit subtracts the **cost of goods** (what you paid for each item) from your revenue. This is the profit from your actual buying and selling activity, before overhead.

```
Gross Profit = Revenue − Cost of Goods
```

## Net Profit

Net profit subtracts your **logged expenses** on top of cost of goods. This is your true bottom-line profit number.

```
Net Profit = Gross Profit − Expenses
```

<Note>
  Net Profit is only accurate if you keep your Expenses page up to date. If you haven't logged expenses, Net Profit will equal Gross Profit.
</Note>

## Average Margin

Your average margin shows what percentage of each sale you're keeping as profit on average.

```
Avg. Margin = (Gross Profit ÷ Revenue) × 100
```

A 30% average margin means for every $100 in sales, you keep $30 as gross profit. Higher is better — but it also depends on volume. A lower margin on high volume can still produce more net profit than a high margin on low volume.

## The Change Badges

Each metric shows a percentage change vs. the equivalent previous period. If you're viewing MTD (May 1–27), it compares to April 1–27.

* **Green** = improved
* **Red** = declined

<Tip>
  If revenue is up but margin is down, you're selling more but each sale is less profitable. This usually means prices need adjustment or you're taking deals that are too thin.
</Tip>