← Back to calculator

How to Estimate Monthly Revenue

You don't need exact numbers. A close estimate is enough to make a smart hiring decision.

Ready to run your numbers? Use the HireWhen Calculator →

Advertisement

The simplest formula

If you're not sure what to enter for monthly revenue, start with this:

Monthly revenue = customers per month × average sale

This works for most small service and product businesses. You don't need accounting software or a bookkeeper to get started. Once you have a revenue figure, compare it against your monthly business expenses to understand your current margin.

Examples

Freelancer or consultant 5 clients × $800 average = $4,000/month
Retail or e-commerce 120 orders × $65 average = $7,800/month
Local service business 40 jobs × $150 average = $6,000/month
SaaS or subscription 80 subscribers × $49/month = $3,920/month

What if revenue varies month to month?

Use a 3-month average. Add your revenue from the last 3 months and divide by 3. This smooths out seasonal swings and gives you a realistic baseline.

If you're pre-revenue or just starting out, use your best projected number. The calculator will still help you understand the margin you need. If you're unsure how much the new hire will cost, see how to estimate salary cost.

Rough estimates are fine

You don't need exact figures to use this tool. A reasonable estimate is enough to see whether hiring is a clear yes, a close call, or too early. You can always come back and adjust your numbers.

Advertisement

Once you have a rough number, plug it into the calculator to see if hiring is safe.

Use the HireWhen Calculator