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The financial health of a company depends on accurate calculations. If you’re planning starting costs, calculating your break-even point, or analyzing the value of a potential acquisition, it’s important to utilize the correct tools. Business calculations can be straightforward or complex however the results are critical.

Start-up costs include the expenses required to start a business that include fixtures, equipment, and office equipment. These costs may include research costs for market research and industry analysis. A good estimate of your startup costs can be determined by examining the financial statements of similar companies in your field or talking with your bookkeeper or accountant for suggestions on specific cost categories. It’s also beneficial to add an extra safety cushion, such as 10%, when you calculate your initial costs to cover the unexpected.

Calculating your total cost can allow you to determine if you will earn a profit after selling your services or products. Calculate your cost of goods (COGS) by using an equation. This figure is essential for determining the cost of goods sold and profit margins.

The most efficient business calculators include numerous functions and are easy to use. Some business calculators come with built-in features, such as amortization and interest rate conversions. Some business calculators have visual graphs, and others connect to computers so that calculations can be saved safely. You can find business calculators that have more advanced features. For instance, an NPV calculator that uses the discounted cash-flow calculation to calculate the net present value.