Calculations are the compass that guide business decisions, budgeting and strategic planning. If you are launching your first venture or have been in business for years, understanding the key formulas that are essential for your business to thrive is imperative.

A business calculator is an electronic device that enables users to quickly and easily complete calculations without the use of a smartphone or computer. A basic business calculator could have just one button and a display, whereas more advanced models can include scientific or graphing functions.

The break-even point is the amount of products or services your company must sell in the time frame to cover its variable and fixed costs, and also to make profit. This data can be used in determining the goals of sales, establish Learn More prices, and determine when you might achieve your first profit.

It is the amount that your company uses to purchase products, services and overhead. The process of subtracting your revenue from expenses will result in net income, which can be the measure of what your business is actually earning at the conclusion of every day. This figure is also referred to as net income, net profits or bottom line.

The startup costs are the first costs of establishing your business. This includes items such as inventory, equipment, and supplies. This calculation can be beneficial when requesting financing and evaluating potential opportunities. It also assists in the development of your company’s growth plan and how you can increase shareholder value.