Lost Profits Calculator
Estimate net lost profits from but-for revenue, actual revenue, variable cost margin, and extraordinary expenses.
Estimate net lost profits after a business disruption
Lost profit damages compare revenue you would have earned but-for an event with revenue you actually realized. Enter but-for and actual revenue, a variable cost percentage, and any extraordinary expenses to estimate net lost profits using a contribution-margin approach.
For related finance workflows, see the Home Sale Profit Calculator and Leverage Profit Calculator.
Formula used
Lost revenue equals but-for revenue minus actual revenue. Avoided variable costs reduce the damage estimate because expenses that would have scaled with lost sales are not incurred. Net lost profits equal lost revenue minus avoided variable costs plus extraordinary costs tied to the event.
Frequently Asked Questions
Why use variable cost percentage?
Courts and analysts often focus on net profits rather than gross revenue. Variable costs represent expenses that move with sales volume, such as materials or fulfillment.
What counts as extraordinary costs?
Add legal fees, remediation, or other one-time expenses caused by the disruption. These increase the damage estimate when they would not have occurred otherwise.
Is this a legal opinion?
No. This calculator is an educational model. Consult qualified counsel and forensic accountants for litigation or claims work.
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