Operating Expenses

Expense blocks help you model all the costs of running your business, from fixed monthly bills to costs that scale with revenue.

Video Tutorial

Types of Expenses

Fixed Expenses

For predictable costs like rent or software subscriptions. Enter the amount, frequency, and a date range, and Profitual spreads it across your forecast automatically.

• Office rent (monthly)
• Insurance premiums (annually)
• Software subscriptions (monthly)
• Retainer fees (monthly)

Fixed expenses are automatically calculated based on your amount and frequency settings.

Variable Expenses

Costs that scale as a percentage of another line:

• Payment processing fees (% of revenue)
• Sales commissions (% of sales)
• Hosting costs (% of revenue)

Variable expenses automatically recalculate when the target line changes.

Manual Expenses

For one-time or irregular costs, use Manual entry. Just click any cell and enter the amount directly. Perfect for conferences, equipment, or anything that doesn’t fit a pattern. Changes are saved automatically as you type.

• One-time purchases
• Conference travel
• Equipment
• Custom forecasting scenarios

Creating an Expense

1. Navigate to Building Blocks → Operating Expenses in the sidebar
2. Click Add Expense
3. Select the expense type (Fixed, Variable, or Manual)
4. Fill in the form and click Save

Fixed expense example:

Expense Name: Office Rent
Category: General & Admin
Expense Type: Fixed
Amount: $3,000
Frequency: Monthly
Start Date: January 2025
End Date: (leave blank for ongoing)

Variable expense example:

Expense Name: Payment Processing
Category: Cost of Goods Sold
Expense Type: Variable
Percentage: 2.9%
Target Line: Pro Plan Monthly (from your Revenue Streams)

Manual expense example:

Expense Name: Marketing Campaigns
Category: Marketing & Sales
Expense Type: Manual

4. Click Add Expense
5. For manual expenses, expand the row to enter monthly amounts

Expense Categories

Use the category filters to focus on specific expense types. Expenses are organized into standard income statement categories:

Viewing Expense Details

Click any item in the list to expand it and see the monthly breakdown of that expense for the selected year. Each row shows the expense name, monthly average, and annual total amounts.

View in Statements

Want to see where an expense appears in your financials? Click View in Statements to jump directly to that line item in your Income Statement. Here you can see all your expense categories — and clicking any expense name brings you right back to the Operating Expenses page.

View Modes

Toggle between two views using the mode selector:

Standard Mode

Card-based list with expand/collapse for each expense. Great for reviewing individual expenses.

Advanced Mode

For power users, the Advanced tab gives you Excel-like control:

• Edit multiple expenses at once using keyboard navigation or the fill handle
• Right-click for quick actions — copy, paste, delete, or edit an expense’s full configuration
• Keyboard shortcuts (Ctrl+C, Ctrl+V, etc.)

Impact on Financial Statements

Expenses appear in your Income Statement under their respective categories: (G&A, R&D, M&S, COGS)

Best Practices

1. Group small expenses - Combine minor costs into categories rather than tracking individually
2. Use Fixed for predictable costs - Saves time vs. manual entry
3. Use Variable for scaling costs - Payment processing, commissions, and similar percentage-based costs
4. Use Manual for irregular costs - When amounts change significantly month to month
5. Set end dates - For expenses you know will stop (e.g., promotional periods)

Related Blocks

• Revenue Streams - Revenue to cover your expenses
• Team Members - Personnel costs (separate from OpEx)