Total the real cost of running a business including overhead and labor.
Please do not make financial decisions based on these results.
What is the Cost of Doing Business Calculator?
Total the real cost of running a business including overhead and labor. To use the Cost of Doing Business Calculator, enter cost of goods sold, operating expenses, payroll, interest, taxes, revenue; it returns total cost of doing business, net profit, cost per $1 of revenue, break-even revenue, and shows them instantly as you type.
How to use business planning calculators
Start with the numbers you already have: price, unit cost, fixed costs and cash on hand. The Break-even Calculator turns them into the sales volume you need, and the Burn Rate Calculator shows how many months your cash will last. Run both before you commit to hiring, a lease or a loan.
Next test the upside. The business valuation calculator compares earnings, revenue and cash-flow methods, while the pre- and post-money calculator shows what a funding round does to ownership.
- Costs. Use the contribution margin, cost function and labor cost calculators to separate fixed from variable costs and to find the true cost of each employee.
- Inventory. FIFO, LIFO, safety stock and GMROI show how much stock to hold and whether it earns its keep.
- Projects. Earned value (EVM), expected monetary value and the profitability index rank projects by cost, schedule and risk.
How to use the Cost of Doing Business Calculator
- Enter your numbers. The inputs are Cost of goods sold ($), Operating expenses ($), Payroll ($), Interest ($), Taxes ($), Revenue ($). Use figures from the same period (same month, quarter or year) for every field. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Total cost of doing business, and the cards below show Net profit, Cost per $1 of revenue, Break-even revenue. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Cost of Doing Business Calculator using the default values shown in the calculator above:
Inputs
| Cost of goods sold ($) | 150,000 |
|---|---|
| Operating expenses ($) | 60,000 |
| Payroll ($) | 120,000 |
| Interest ($) | 6,000 |
| Taxes ($) | 18,000 |
| Revenue ($) | 420,000 |
Results
| Total cost of doing business | $354,000.00 |
|---|---|
| Net profit | $66,000.00 |
| Cost per $1 of revenue | 0.84 |
| Break-even revenue | $354,000.00 |
With these inputs the calculator returns Total cost of doing business: $354,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Cost of goods sold ($) from 150,000 to 180,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Total cost of doing business | $354,000.00 | $384,000.00 | +8.5% |
| Net profit | $66,000.00 | $36,000.00 | -45.5% |
| Cost per $1 of revenue | 0.84 | 0.91 | +8.5% |
| Break-even revenue | $354,000.00 | $384,000.00 | +8.5% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Cost of Doing Business Calculator reports Total cost of doing business, net profit, cost per $1 of revenue and break-even revenue. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is included in the cost of doing business?
Every expense needed to operate: materials, wages, rent, utilities, insurance, interest and taxes.
Can I use these for a business plan?
Yes. They give quick estimates for break-even, valuation, budgets and project returns. Confirm important figures with your accountant before relying on them.
Are the results forecasts?
No. They apply the formula shown to the numbers you enter, so the output is only as realistic as your assumptions.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related business planning calculators
- Average Fixed Cost Calculator
- Business Budget Calculator
- Cost Function Calculator
- Labor Cost Calculator
- Business Valuation Calculator
- Build vs. Buy Calculator
- Cost of Goods Sold Calculator
- Direct Material Price Variance Calculator
- EVM Calculator
- FIFO Calculator for Inventory
- High-Low Method Calculator
- Man-Hours Calculator
All Business Planning calculators →