Calculation basis
MLMProfitCalc is an independent calculator, not an assessment of a company’s legitimacy. Plans use expected transactions; actuals use your records. Choosing Actual is not independent verification that a transaction happened.
Profit
Profit = sales after returns − cost of goods sold − sales deductions + commissions + bonuses − other expenses − write-offs + supplier return adjustment. Other expenses include the taxes and mandatory charges you enter.
Inventory cost and ordering
Inventory uses moving weighted-average cost: stock value divided by units after a purchase. Transactions run by date, then entry order for matching dates. A sale, write-off or supplier return cannot exceed stock available at that point.
Returns
A customer return references a specific sale, including an individual plan repetition. Total returns cannot exceed units sold. Original revenue and cost are allocated proportionally; the last return absorbs the rounding remainder. Supplier returns remove inventory at current average cost; the difference from cash refunded affects profit.
Cash and owner withdrawals
Purchases and sales are treated as paid on the transaction date. Opening cash and inventory are not income for the period. Personal consumption is an owner withdrawal. Loan principal is not sales or a profit expense; borrowing costs can be entered as interest. Accounts receivable, accounting depreciation and country-specific tax filings are not simulated.
Break-even and income target
Contribution per sale = selling price − unit cost − other unit costs − sales deduction. With positive contribution, the required sales count rounds up to whole units. Company commissions and bonuses offset period expenses. If contribution is zero or negative and other income is insufficient, selling more cannot reach the target.
Precision and data limits
Money uses Decimal.js decimal arithmetic and round-half-up to two places. Quantities support three decimal places. Up to 20 scenarios, 100 products and 5,000 source transactions per scenario, 60 months and 10,000 expanded occurrences. Individual amounts up to one billion; monetary totals up to one trillion. Invalid values are rejected, not replaced by zero. Currencies are not converted.
Sources and revision
Methodology revision: 15 October 2026. Examples are fictional arithmetic checks, not participant earnings data. Context for expense omissions: the FTC’s 2024 review of MLM income disclosures. The exported transaction journal makes calculation results auditable.