Create app.py

app.py

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+import gradio as gr
+import numpy as np
+import pandas as pd
+import numpy_financial as npf
+import warnings
+
+# Suppress RunTimeWarning from numpy_financial if IRR cannot be computed
+warnings.filterwarnings("ignore", category=RuntimeWarning, module='numpy_financial')
+
+def financial_projection(initial_investment, passive_income_investment, return_rate, units_year1, revenue_per_unit_year1, cogs_per_unit_year1, fixed_expenses_year1, variable_expenses_year1, units_growth_rate, revenue_growth_rate, cogs_growth_rate, fixed_expenses_growth_rate, variable_expenses_growth_rate):
+    """
+    Calculates the 5-year financial projection for a business.
+    Inputs are assumed to be in Lacs where applicable.
+    """
+    # Handle potential None inputs from Gradio startup
+    initial_investment = initial_investment or 0
+    passive_income_investment = passive_income_investment or 0 # Note: This input is not currently used
+    return_rate = return_rate or 0 # Note: This input is not currently used
+    units_year1 = units_year1 or 0
+    revenue_per_unit_year1 = revenue_per_unit_year1 or 0
+    cogs_per_unit_year1 = cogs_per_unit_year1 or 0
+    fixed_expenses_year1 = fixed_expenses_year1 or 0
+    variable_expenses_year1 = variable_expenses_year1 or 0
+    units_growth_rate = units_growth_rate or 0
+    revenue_growth_rate = revenue_growth_rate or 0
+    cogs_growth_rate = cogs_growth_rate or 0
+    fixed_expenses_growth_rate = fixed_expenses_growth_rate or 0
+    variable_expenses_growth_rate = variable_expenses_growth_rate or 0
+
+    years = 5
+    revenue = []
+    expenses = []
+    net_profit = []
+    cash_flow_for_npv_irr = []
+    cumulative_net_profit = 0
+    cumulative_net_profits = []
+
+    # Initialize lists with first year values
+    units = [units_year1]
+    revenue_per_unit = [revenue_per_unit_year1]
+    cogs_per_unit = [cogs_per_unit_year1]
+    fixed_expenses = [fixed_expenses_year1]
+    variable_expenses_per_unit = [variable_expenses_year1] # Assume variable expense input is per unit
+
+    # Calculate projections for 5 years
+    for year in range(years):
+        if year > 0:
+            units.append(units[year-1] * (1 + units_growth_rate/100))
+            revenue_per_unit.append(revenue_per_unit[year-1] * (1 + revenue_growth_rate/100))
+            cogs_per_unit.append(cogs_per_unit[year-1] * (1 + cogs_growth_rate/100))
+            fixed_expenses.append(fixed_expenses[year-1] * (1 + fixed_expenses_growth_rate/100))
+            variable_expenses_per_unit.append(variable_expenses_per_unit[year-1] * (1 + variable_expenses_growth_rate/100))
+
+        # Revenue, Expenses, and Net Profit calculations
+        revenue_year = units[year] * revenue_per_unit[year]
+        cogs_year = units[year] * cogs_per_unit[year]
+        variable_expenses_year_total = units[year] * variable_expenses_per_unit[year]
+        expenses_year = cogs_year + fixed_expenses[year] + variable_expenses_year_total
+        net_profit_year = revenue_year - expenses_year
+
+        revenue.append(revenue_year)
+        expenses.append(expenses_year)
+        net_profit.append(net_profit_year)
+        cash_flow_for_npv_irr.append(net_profit_year) # Using net profit as proxy for cash flow
+
+        cumulative_net_profit += net_profit_year
+        cumulative_net_profits.append(cumulative_net_profit)
+
+    # --- Performance Measures Calculations ---
+
+    revenue_np = np.array(revenue)
+    net_profit_np = np.array(net_profit)
+    units_np = np.array(units)
+    cogs_per_unit_np = np.array(cogs_per_unit)
+    cogs_np = units_np * cogs_per_unit_np
+
+    # Margins
+    total_revenue = np.sum(revenue_np)
+    avg_net_profit_margin = (np.sum(net_profit_np) / total_revenue * 100) if total_revenue != 0 else 0
+    # Calculate Gross Profit per year before averaging the margin
+    gross_profit_yearly = revenue_np - cogs_np
+    # Avoid division by zero if revenue is zero in any year
+    gross_profit_margin_yearly = np.divide(gross_profit_yearly * 100, revenue_np, out=np.zeros_like(revenue_np), where=revenue_np!=0)
+    avg_gross_profit_margin = np.mean(gross_profit_margin_yearly)
+    avg_operating_profit_margin = avg_net_profit_margin # Assuming Net Profit = Operating Profit for this model
+
+    # ROI
+    roi = (cumulative_net_profit / initial_investment * 100) if initial_investment != 0 else float('inf') if cumulative_net_profit > 0 else 0
+
+    # Break-even Year calculation
+    break_even_year = "N/A (or Profitable from Year 1 if Inv=0)" if initial_investment == 0 else "Never within 5 years"
+    if initial_investment > 0:
+         for year_index in range(years):
+             if cumulative_net_profits[year_index] >= initial_investment:
+                 break_even_year = year_index + 1
+                 break
+
+    # NPV & IRR calculation (using 10% discount rate)
+    # Include initial investment as outflow at time 0
+    cash_flows_for_calc = [-initial_investment] + cash_flow_for_npv_irr if initial_investment is not None else cash_flow_for_npv_irr
+    npv = npf.npv(0.10, cash_flows_for_calc) if cash_flows_for_calc else 0 # Handle empty cash flows
+
+    irr = "N/A"
+    try:
+        # IRR calculation requires at least one positive and one negative cash flow
+        if any(cf > 0 for cf in cash_flows_for_calc) and any(cf < 0 for cf in cash_flows_for_calc):
+             irr_calc = npf.irr(cash_flows_for_calc)
+             irr = f"{irr_calc * 100:.2f}" if not np.isnan(irr_calc) else "N/A (Calculation Error)"
+        elif initial_investment == 0 and all(cf >= 0 for cf in cash_flow_for_npv_irr):
+            irr = "Infinite (No Investment)" # Or technically undefined
+        else:
+            irr = "N/A (Cannot Calculate)" # e.g., all negative or all zero flows after investment
+    except Exception: # Catch potential errors in IRR calculation
+         irr = "N/A (Calculation Error)"
+
+    # --- Prepare Results ---
+    years_list = list(range(1, years + 1))
+    results = {
+        "Revenue DF": pd.DataFrame({'Year': years_list, 'Revenue': revenue}),
+        "Expenses DF": pd.DataFrame({'Year': years_list, 'Expenses': expenses}),
+        "Net Profit DF": pd.DataFrame({'Year': years_list, 'Net Profit': net_profit}),
+        "Cumulative Net Profit DF": pd.DataFrame({'Year': years_list, 'Cumulative Net Profit': cumulative_net_profits}),
+        "Net Profit Margin": f"{avg_net_profit_margin:.2f}",
+        "Gross Profit Margin": f"{avg_gross_profit_margin:.2f}",
+        "Operating Profit Margin": f"{avg_operating_profit_margin:.2f}",
+        "Final Cumulative Net Profit": f"{cumulative_net_profit:.2f}", # Use a distinct key for the text output
+        "ROI": f"{roi:.2f}" if roi != float('inf') else "Infinite (No Investment)",
+        "Break-even Year": str(break_even_year),
+        "NPV": f"{npv:.2f}",
+        "IRR": irr # Already formatted or N/A string
+    }
+
+    # Return values in the order expected by the outputs list
+    return (
+        results["Revenue DF"],
+        results["Expenses DF"],
+        results["Net Profit DF"],
+        results["Cumulative Net Profit DF"], # DataFrame for the plot
+        results["Net Profit Margin"],
+        results["Gross Profit Margin"],
+        results["Operating Profit Margin"],
+        results["Final Cumulative Net Profit"], # String for the text output
+        results["ROI"],
+        results["Break-even Year"],
+        results["NPV"],
+        results["IRR"]
+    )
+
+if __name__ == "__main__":
+    # Define input components
+    initial_investment_input = gr.Number(label="Initial Investment (Lacs)", value=10) # Added default values for quicker testing
+    passive_income_investment_input = gr.Number(label="Passive Income Investment (Lacs) [Not Used]", value=0)
+    return_rate_input = gr.Number(label="Return Rate (%) [Not Used]", value=0)
+    units_year1_input = gr.Number(label="Units Sold Year 1", value=1000)
+    revenue_per_unit_year1_input = gr.Number(label="Revenue per Unit Year 1 (Lacs)", value=0.005) # e.g., 500 Rs
+    cogs_per_unit_year1_input = gr.Number(label="COGS per Unit Year 1 (Lacs)", value=0.002) # e.g., 200 Rs
+    fixed_expenses_year1_input = gr.Number(label="Fixed Expenses Year 1 (Lacs)", value=1)
+    # Clarified label: Variable expenses *per unit*
+    variable_expenses_per_unit_year1_input = gr.Number(label="Variable Expenses per Unit Year 1 (Lacs)", value=0.001) # e.g., 100 Rs
+    units_growth_rate_input = gr.Number(label="Units Growth Rate (%)", value=10)
+    revenue_growth_rate_input = gr.Number(label="Revenue per Unit Growth Rate (%)", value=5) # Clarified label
+    cogs_growth_rate_input = gr.Number(label="COGS per Unit Growth Rate (%)", value=3) # Clarified label
+    fixed_expenses_growth_rate_input = gr.Number(label="Fixed Expenses Growth Rate (%)", value=4)
+    variable_expenses_growth_rate_input = gr.Number(label="Variable Expenses per Unit Growth Rate (%)", value=3) # Clarified label
+
+    # Define output components
+    # Specify x and y for LinePlots
+    revenue_output = gr.LinePlot(x="Year", y="Revenue", label="Revenue (Lacs)", title="5-Year Revenue Projection")
+    expenses_output = gr.LinePlot(x="Year", y="Expenses", label="Expenses (Lacs)", title="5-Year Expenses Projection")
+    profit_output = gr.LinePlot(x="Year", y="Net Profit", label="Net Profit (Lacs)", title="5-Year Net Profit Projection")
+    cumulative_profit_plot_output = gr.LinePlot(x="Year", y="Cumulative Net Profit", label="Cumulative Net Profit (Lacs)", title="5-Year Cumulative Net Profit") # Renamed for clarity
+
+    net_profit_margin_output = gr.Text(label="Avg. Net Profit Margin (%)", info="Average percentage of revenue kept as profit after ALL expenses over 5 years.")
+    gross_profit_margin_output = gr.Text(label="Avg. Gross Profit Margin (%)", info="Average percentage of revenue left after paying direct costs (COGS) over 5 years.")
+    operating_profit_margin_output = gr.Text(label="Avg. Operating Profit Margin (%)", info="Average percentage of revenue left after COGS and operating expenses (fixed + variable) over 5 years. (Same as Net Profit Margin in this model).")
+    # Renamed component variable for clarity
+    final_cumulative_net_profit_output = gr.Text(label="Total Cumulative Net Profit (Lacs)", info="The total profit accumulated over the 5-year period.")
+    roi_output = gr.Text(label="Simple ROI (%)", info="Return on Investment: (Total 5yr Net Profit / Initial Investment) * 100. Doesn't account for time value of money.")
+    break_even_year_output = gr.Text(label="Break-even Year", info="The year when cumulative net profit first equals or exceeds the initial investment.")
+    npv_output = gr.Text(label="NPV (Lacs)", info="Net Present Value at a 10% discount rate. Positive value suggests the investment exceeds the required return.")
+    irr_output = gr.Text(label="IRR (%)", info="Internal Rate of Return. The effective annual rate of return generated by the investment. Compare to your minimum acceptable rate.")
+
+    # Create the interface
+    iface = gr.Interface(
+        fn=financial_projection,
+        inputs=[initial_investment_input, passive_income_investment_input, return_rate_input, units_year1_input, revenue_per_unit_year1_input, cogs_per_unit_year1_input, fixed_expenses_year1_input, variable_expenses_per_unit_year1_input, units_growth_rate_input, revenue_growth_rate_input, cogs_growth_rate_input, fixed_expenses_growth_rate_input, variable_expenses_growth_rate_input],
+        # Ensure the outputs list matches the return statement order and types
+        outputs=[
+            revenue_output,              # Expects DataFrame
+            expenses_output,             # Expects DataFrame
+            profit_output,               # Expects DataFrame
+            cumulative_profit_plot_output, # Expects DataFrame (Corrected name)
+            net_profit_margin_output,    # Expects String
+            gross_profit_margin_output,  # Expects String
+            operating_profit_margin_output, # Expects String
+            final_cumulative_net_profit_output, # Expects String (Corrected name)
+            roi_output,                  # Expects String
+            break_even_year_output,      # Expects String
+            npv_output,                  # Expects String
+            irr_output                   # Expects String
+        ],
+        title="5-Year Financial Projection Calculator (Amounts in Lacs)",
+        description="Enter business assumptions (in Lacs where specified) to project financials and key performance indicators over 5 years.",
+        theme=gr.themes.Soft(primary_hue="green", secondary_hue="blue"),
+        allow_flagging='never' # Optional: disable flagging
+    )
+
+    # Launch the app
+    iface.launch()