Business calculations involve mathematical concepts that form a part of the finance and revenue process in a company. They comprise profit, loss and interest calculations and salary calculations, among others. These financial calculations allow the business to effectively manage its revenues and expenses. They are also crucial when preparing invoices, submitting quotations, and in calculating tax. Many of these calculations require the changing of numbers between different standards, such as dollars to rupees (or from lacs to crore). This is where the business calculator can be useful.

Costs of starting

To estimate your first business costs, make a checklist of the recurring and one-time expenses you’ll face during the first year of your business. This could include licensing, permits, equipment or items, a website, bookkeeping or accounting fees, and professional or legal consultation costs. You’ll need to conduct some research on your field and study the financial statements of similar companies to determine what the costs are. It’s generally recommended to add 10% to your estimates, in the event of unexpected expenses.

Net income

Calculating your net income is a relatively easy task, but it’s also a crucial one for assessing the financial viability of your business. To determine it subtract your total expenses from your total revenue. The result can tell you if your product or service is priced at the appropriate price, and alert you to any pricing issues, and help determine how long it will take for your business to break even.