Accurate calculations are essential to the financial health of any company. No matter if you’re planning start-up costs, figuring out your breakeven point or analyzing the value of an acquisition, you must utilize the appropriate tools. Calculations can be straightforward or complicated however the results are what matter.

Start-up costs cover the costs required to start a business like fixtures, equipment, and office equipment. The costs for starting a business can include research costs for market research and industry analysis. A good estimate of your startup costs can be determined by looking over the financial statements of similar businesses in your field or talking with your accountant or bookkeeper for suggestions on specific cost categories. It’s also a good idea to add an insurance buffer such as 10%, when you calculate your initial costs to allow for unexpected expenses.

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

The most effective business calculators are simple to use and have an array of functions. Some calculators for business have built-in functions like amortization and interest rate conversions. Some calculators for business have visual graphs, while others connect to a computer so that calculations can be saved safely. There are also business calculators with more sophisticated features, for instance, an NPV calculator, which employs an estimated cash flow calculation to calculate the net value of cash flows in the future.

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