Business Calculations

Accurate calculations are vital to the market values financial health of any business. No matter if you’re planning the initial costs, determining your breakeven point, or looking at the potential value of an acquisition, it’s crucial to utilize the appropriate tools. Calculations can be easy or complicated however the results are what matter.

Start-up costs cover the costs needed to launch a business including fixtures, equipment, and office supplies. The cost of starting up can also include research costs including market and industry analyses. An accurate estimate of startup expenses can be calculated by looking over the financial statements of similar businesses in your sector or speaking with your bookkeeper or accountant for assistance on specific cost categories. You should also consider adding a safety cushion of 10% of your beginning costs, in order to be prepared for the unforeseeable.

Calculating your total cost can help you determine if you are able to make a profit selling your products or services. Calculate your cost of goods (COGS) by using the formula. This figure is important in determining the price and profit margins.

The most effective business calculators come with various functions and are simple to use. Some calculators for business come with built-in functions, such as amortization and interest rate conversions. Some may also have visual graphs or connect to a computer for safe storage of calculations. You can also find business calculators that have more advanced features, for instance, an NPV calculator, which uses a discounted cash-flow calculation to determine the net value of future cash flows.