Business Calculations

The financial health of a business depends on accurate calculations. No matter if you’re planning start-up costs, figuring out your breakeven point or analyzing the potential value of an acquisition, you must use the proper tools. Calculations can be simple or complicated, but the results matter.

Costs for starting up are the costs necessary to establish an enterprise, which includes furniture, office equipment, and equipment. The cost of starting up can also include research costs including market and industry analyses. A good estimate of startup costs can be derived by reviewing the financial statements of similar businesses in your sector or speaking with your accountant or bookkeeper for assistance on specific cost categories. You should also consider adding an insurance policy, such as 10% to your starting costs, to account for the unforeseeable.

Calculating your total cost will aid in determining if you are able to make a profit selling your goods or services. Calculate your cost of goods (COGS) by using an equation. This is an important figure for setting prices and determining your profit margin.

The best business calculators are easy to use and have many functions. Some calculators for business come with built-in functions for amortization or interest rate conversions. Others may include visual graphs or connect to a computer for safe storage of calculations. You can find business calculators that include more advanced features. For instance an NPV calculator that employs discounted cash flow calculations to determine future cash flows’ net present value.

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