Business Calculations

The financial health of any business is dependent on accurate calculations. Whether you are planning for starting costs, calculating your breakeven point or analyzing the value of a possible acquisition, you must use the correct tools. Calculations can be simple or complicated but the results are important.

Start-up costs are the cost required to start a business, such as fixtures, equipment, and office supplies. These costs may include research expenses including market and industry analyses. You can estimate the startup costs by looking at the financial statements of businesses in your field or asking your bookkeeper or accountant about specific cost categories. You should also consider adding a safety cushion that is at least 10% to your initial costs to account for the unforeseeable.

Calculating your total cost will allow you to determine if you are able to make a profit selling your products or services. Calculate your cost of goods (COGS) by using an equation. This is a crucial figure when setting prices and determining your profit margin.

The best business calculators are easy to use and offer a variety of functions. Certain business calculators have built-in features such read the full info here as amortization and interest rate conversions. Certain business calculators feature visual graphs, and others connect to a computer to allow calculations to be saved safely. There are business calculators that have more advanced features. For instance, an NPV calculator that uses the discounted cash-flow calculation to calculate the future cash flows‘ net present value.