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The financial health of a business depends on accurate calculations. Whether you are planning for starting costs, calculating your break-even point, or analyzing the value of a possible acquisition, it’s important to make use of the appropriate tools. Business calculations can be easy or complex however the results are crucial.

Start-up costs include the expenses needed to launch a business including fixtures, equipment and office equipment. Start-up costs can include research costs like market and industry analysis. You can estimate the startup costs by examining the financial statements of businesses that are in your field, or asking your accountant or bookkeeper for specific cost categories. You should also consider adding a safety cushion, such as 10% of your initial costs, to be prepared for the unforeseeable.

Calculating your total cost will allow you to determine what profit, if any, you can make after selling all of your products or services. You can calculate your cost of goods sold (COGS) using an equation. This is a crucial factor in determining prices and your profit margin.

The most effective business calculators are simple to use and come with various functions. Some calculators for business have built-in features like amortization and conversion of interest rates. Some calculators for business have visual graphs, and others connect to a computer to allow calculations to be safely stored. You can also find business calculators with more sophisticated features, such as an NPV calculator, which utilizes a discounted cash-flow calculation to determine the net value of future cash flows.