1. What is GET (Gross Earnings Tax)?

GET (Gross Earnings Tax) is a tax calculation that measures the percentage of earnings remaining after accounting for cost of goods sold and expenses. It represents the profitability of a business before other deductions.

2. How Does the Calculator Work?

The calculator uses the GET formula:

Where:

• \( Vendas \) — Total sales revenue ($)
• \( CMV \) — Cost of goods sold ($)
• \( Despesas \) — Operating expenses ($)

Explanation: The formula calculates the percentage of sales revenue that represents gross earnings after accounting for direct costs and expenses.

3. Importance of GET Calculation

Details: GET calculation is crucial for businesses to understand their profitability, make pricing decisions, and assess tax obligations. It helps identify areas where cost control can be improved.

4. Using the Calculator

Tips: Enter sales revenue, cost of goods sold, and expenses in dollars. All values must be valid (sales > 0). The result will be displayed as a percentage.

5. Frequently Asked Questions (FAQ)

Q1: What is a good GET percentage?
A: This varies by industry, but generally a higher GET percentage indicates better profitability. Most businesses aim for 15-25% or higher.

Q2: How is GET different from profit margin?
A: GET focuses specifically on earnings after cost of goods and operating expenses, while profit margin may include additional factors like taxes and interest.

Q3: Can GET be negative?
A: Yes, if expenses and cost of goods exceed sales revenue, GET will be negative, indicating the business is operating at a loss.

Q4: How often should GET be calculated?
A: Businesses should calculate GET regularly, typically monthly or quarterly, to monitor financial health and make timely adjustments.

Q5: Does GET include all business expenses?
A: GET includes cost of goods sold and operating expenses but may not include extraordinary items, taxes, or interest expenses depending on the calculation method.