SASA
Simple Tips by SASA
What is Operating Income? 🤑 The definition & tips and tricks for beginners
What is Operating Income?
Operating income is a business's profit from its core operations after deducting operating expenses like rent, utilities, salaries, and supplies. excluding things like tax.
​
For freelancers, it’s a key metric that shows how much money you’re actually earning from your work, excluding non-operational costs like taxes or investment income.
Operating Income example
The gross revenue is how much is taken home after operational costs excluding taxes and investment income
Operating Incom Formula ∑
Operating Income = Gross Revenue - Operating Expenses
Let’s say you’re a freelance graphic designer:
• Gross Revenue: You earned $8,000 this month from client projects.
• Operating Expenses:
• Software subscription: $300
• Marketing: $500
• Rent for your co-working space: $1,200
• Miscellaneous supplies: $200
Total Operating Expenses = $2,200
Using the formula:
Operating Income = 8,000 - 2,200 = 5,800
Operating Income Calculator
Track your operating income with SASA
Accounting software for self employed people
SASA helps you keep track of your business's revenue, and expenses so you can know your gross and net profit. Just connect your bank accounts ad SASA will do the rest for you.
_gif.gif)