The financial health of a company depends on accurate calculations. It is crucial to utilize the right tools when planning the cost of starting up and calculating your breakeven point or analyzing an potential acquisition. Calculations can be easy or complex however the results are what matter.

Start-up costs are the cost required to begin a new business, such as fixtures, equipment and office supplies. The costs for starting a business can include research costs, such as market and industry analysis. It is possible to estimate startup costs by looking over the financial statements of companies in your industry or asking your bookkeeper or accountant about specific cost categories. It’s also a good idea to add a buffer of safety like 10%, when calculating your initial costs to account for the unexpected.

Calculating your total cost will allow you to determine what profit, if any you can earn after you’ve sold all your products or services. Calculate your cost of goods (COGS) by using a formula. This figure is important to determine prices and profit margins.

The most effective business calculators come with numerous functions and are simple to use. Some business calculators come with built-in features such as interest rate conversions and amortization. Certain business calculators come with visual graphs, and others connect to a computer so that calculations can be saved safely. You can find business calculators with more advanced features. For instance an NPV calculator which uses a discounted-cash-flow calculation to determine the future cash flows’ net present value.

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