> ## Documentation Index
> Fetch the complete documentation index at: https://docs.keystn.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Profitability

> The Profitability module combines loan revenue, commission payouts, and expenses to calculate net profit, margins, and per-loan economics.

## Overview

Profitability answers the fundamental question: "After paying commissions and covering expenses, how much money are we actually making?" It pulls data from three sources:

* **Revenue** -- Broker compensation from funded loans
* **Commissions** -- Wages paid through pay period records
* **Expenses** -- Operating costs tracked in the Expenses module

## Summary KPIs

The top of the dashboard shows eight key financial metrics:

| Metric                  | Description                                                                   |
| ----------------------- | ----------------------------------------------------------------------------- |
| **Total Revenue**       | Sum of broker compensation for all funded loans in the period                 |
| **Total Expenses**      | Sum of all expenses in the period                                             |
| **Total Commissions**   | Sum of all wages paid through pay periods overlapping the selected date range |
| **Net Profit**          | Revenue - Commissions - Expenses                                              |
| **Profit Margin**       | Net Profit / Revenue x 100 (as a percentage)                                  |
| **Revenue Per Loan**    | Total Revenue / Number of Funded Loans                                        |
| **Cost Per Loan**       | (Commissions + Expenses) / Number of Funded Loans                             |
| **Net Profit Per Loan** | Net Profit / Number of Funded Loans                                           |

### Period-over-Period Comparison

When a date range is set, the system calculates the prior period and shows percentage change for:

* Total Revenue
* Net Profit
* Profit Margin

## By Loan Officer

The LO breakdown shows each loan officer's individual profitability:

| Column          | Description                                 |
| --------------- | ------------------------------------------- |
| **Name**        | Loan officer's full name                    |
| **Revenue**     | Broker compensation from their funded loans |
| **Commissions** | Wages paid to them through pay periods      |
| **Expenses**    | Expenses attributed to them                 |
| **Net Profit**  | Revenue - Commissions - Expenses            |
| **Margin**      | Net Profit / Revenue as a percentage        |

This view is sorted by revenue (highest first) and helps identify which LOs are the most profitable -- not just the highest producing, but those who generate the best margin after accounting for their costs.

## By Branch

The branch breakdown aggregates the same profitability metrics by branch location:

| Column          | Description                                                  |
| --------------- | ------------------------------------------------------------ |
| **Branch**      | Branch name (or "Unassigned" for employees without a branch) |
| **Revenue**     | Total broker compensation from that branch's LOs             |
| **Commissions** | Total wages paid to branch employees                         |
| **Expenses**    | Total expenses for branch employees                          |
| **Net Profit**  | Revenue - Commissions - Expenses                             |
| **Margin**      | Net Profit / Revenue as a percentage                         |

## Monthly P\&L

The monthly profit-and-loss view breaks down financial performance by calendar month, providing a time-series view of profitability.

| Column          | Description                                      |
| --------------- | ------------------------------------------------ |
| **Month**       | Calendar month (Jan through Dec)                 |
| **Revenue**     | Broker compensation from loans funded that month |
| **Expenses**    | Expenses dated to that month                     |
| **Commissions** | Wages from pay periods starting in that month    |
| **Net Profit**  | Revenue - Commissions - Expenses                 |

The monthly P\&L is useful for identifying seasonal trends in profitability, spotting months where costs spiked, and tracking the trajectory of margins over time.

## How Costs Are Attributed

Understanding how costs are assigned to people and branches is important for interpreting profitability data:

### Revenue Attribution

Revenue is attributed based on the **loan officer** assigned to each funded loan. The loan officer's branch determines the branch attribution.

### Commission Attribution

Commissions are attributed based on the **employee** on each pay period record. The employee's branch determines the branch attribution.

### Expense Attribution

Expenses are attributed based on the **employee** the expense is assigned to. The employee's branch determines the branch attribution.

This means a loan officer's profitability reflects:

* Revenue from loans they originated
* Commissions paid to them
* Expenses charged to them

## Filtering

Profitability analytics support the following filters:

| Filter           | Description                                                                                                                             |
| ---------------- | --------------------------------------------------------------------------------------------------------------------------------------- |
| **Date Range**   | Scope the analysis period. Revenue uses funded date; expenses use expense date; commissions use pay period overlap.                     |
| **Loan Officer** | Filter to a specific LO's profitability                                                                                                 |
| **Branch**       | Filter to a specific branch. Applies to loans (via LO's branch), payroll (via employee's branch), and expenses (via employee's branch). |