Business Calculations

The financial health of any business depends on accurate calculations. If you’re planning start-up costs, figuring out your breakeven point or analyzing the value of a possible acquisition, it is essential to use the proper tools. Calculations can be straightforward or complex however the results are what matter.

Start-up costs are the expenses required to launch an entirely new business, which include furniture, office supplies, and equipment. Start-up costs can include research expenses for market research and industry analyses. A good estimate of startup costs can be determined by studying the financial statements of businesses similar to yours in your sector or speaking with your accountant or bookkeeper for advice on specific cost categories. You should also consider adding a safety cushion, such as 10% of your initial costs, to be prepared for the unforeseeable.

Calculating your total cost will help you determine the profit, if any, you can make after you have sold all of your products or services. You can calculate your cost of goods sold (COGS) using an equation. This is a crucial figure in setting prices and determining your profit margin.

The most effective business calculators come with numerous functions and are easy to use. Some calculators for business have built-in features such as amortization and conversion of interest rates. Certain business calculators feature visual graphs, and others connect to a computer so that calculations can be saved in a safe manner. There are business calculators that include more advanced business rating pro features. For instance, an NPV calculator that employs discounted cash flow calculations to determine future cash flows’ net present value.