Business budget calculator

 

About this calculator?

This is a tool for predicting/analysing the budget of a business on a monthly basis, allowing you to compile all business budget's figures into a single, easy-to-understand summary. This can be utilised as a budget worksheet to plan upcoming months or to rapidly reevaluate the business objectives.

A budget is a thorough plan that outlines how finance will be or is being utilised and accounted for. Establish how effective your predicted or current business structure is with defined income and expenses.

This plan can be compared to real business operations to evaluate performance The amount of time required to recuperate the initial investment expenditures.

A budget can assist you with:

  • Forecasting what profits can be generated.

  • Planning where to invest the revenue.

  • Observe the difference between the predicted and actual results.

 

The end-goal.

The end-goal of utilising this calculator is to allow you to rapidly assess your budget and determine which areas of a business require an increase or decrease of investment or if a business model needs to evolve.

This budget calculator can validate if your business’s budget needs more flexibility by clearly identifying:

  1. Revenue: The amount expected to generate from the sale of goods or services.

  2. Fixed costs: All regular and consistent costs that do not change, business expenses such as rent, utilities, bank fees and more.

  3. Variable costs: Costs that are adjusted in accordance with the production or purchase of the product/service, this may include raw materials, inventory, production costs, packaging/shipping, sales commission, credit card fees, travel and more.

  4. One-off costs: Startup costs, such as moving offices, equipment, furniture, as well as other costs related to launch and research.

  5. Cash flow: Financial movement into and out of a business. If the budget calculation is positive then the cash flow indicates that more funds are travelling into the business over a set period than going out.

  6. Profit: The resulting funds after deducting expenses from revenue. Growing profits indicates a growing business.

 

Necessary terms.

  • Monthly operating income: Primary sources of income, directly selling products/services/subscriptions.

  • Monthly non-operating income: Secondary sources of income, such as interest from bank accounts, grants or donations.

  • One-time costs: Upfront charges for starting a business, such as equipment, furniture, marketing, stocking up on goods and more.

  • Monthly salaries: Expenses for monthly wages, earned benefits or commissions.

  • Monthly expenses: Costs incurred for running a business that contributes to a monthly budget deficit, such as rent, utilities, insurances, leases, travel, office supplies and more.

  • Initial investment: The same as ‘one-time costs’, this is the finance required for initialising a business before generating profit. Applicable to start-up businesses that are not yet operational.

  • Total monthly income: This is the revenue that a business generates.

  • Total monthly expenses: This is the finance required to manage a businesses operation.

  • Monthly budget balance: Money that justifies if a business is profitable. A negative budget suggests that business performance is not sustainable and thus not generating a profit. This value can assist in course-correcting a business to better financially survive.

  • Payback period: The amount of time required to recuperate the initial investment expenditures.

 

The formula.

Monthly Operating Income

  • Total Monthly Operating Income: TMOI

  • Income 1: I1

  • Income 2: I2

  • Income 3: I3

  • Income 4: I4

TOI = I1 + I2 + I3 + I4

Monthly Non-Operating Income

  • Total Monthly Non-Operating Income: TMOI

  • Interest income: ITIE

  • Donations: DTN

  • Gifts: GFT

  • Grants: GAT

  • Other income: OI

TNOI = ITIE + DTN + GFT + GAT + OI

One-Time Costs

  • Total One-Time Costs: TOTC

  • Purchase price: PEPE

  • Licences: LS

  • Hardware: HE

  • Software: SE

  • Setup and installation: SAI

  • Deposits: DS

  • Legal fees: LF

  • Furniture: FE

  • Decorating: DG

  • Starting inventory: SI

  • Company stationery: CS

  • Advertising/promotions: AP

  • Operating cash: OC

  • Other one-time costs: OOTC

TOTC = PEPE + LS + HE + SE + SAI + DS + LF + FE + DG + SI + CS + AP + OC + OOTC

Monthly Salaries

  • Total Monthly Salaries: TMS

  • Owner/manager salary: OMS

  • Salaries: SS

  • Benefits: BS

  • Commissions: CS

TS = OMS + SS + BS + CS

Monthly Expenses

  • Total Monthly Expenses: TME

  • Rent: RT

  • Taxes: TS

  • Debts: DS

  • Advertising/marketing: AM

  • Health insurance: HI

  • Business insurance: BI

  • Professional fees: PF

  • Franchise fee: FF

  • Inventory: IY

  • Postage/shipping: PS

  • Equipment leases: EI

  • Transportation: TN

  • Travel: TL

  • Maintenance/repairs: MR

  • Utilities: US

  • Telephone: TE

  • Internet: IT

  • Website: WE

  • Subscriptions/dues: SD

  • Office supplies: OS

  • Entertainment: ET

  • Miscellaneous: MS

TME = RT + TS + DS + AM + HI + BI + PF + FF + IY + PS + EI + TN + TL + MR + US + TE + IT + WE + SD + OD + ET + MS

Summary

  • Initial investment: II

  • Total monthly income: TMI

  • Total monthly expenditure: TME

  • Monthly budget balance: MBB

  • Payback period: PP

II = Total One-Time Costs

TMI = Total Monthly Operating Income + Total Monthly Non-Operating Income

TME = Total Monthly Salaries + Total Monthly Expenses

MBB = TMI - TME

PP = II / MBB

 

Thank you for taking the time to interact with this calculator. Hopefully, this has provided you with insight to assist you with your business.


Luke Anthony Houghton

Founder & Digital Consultant

UX & UI Frontend Website Programmer | Brand & Social Media Manager | Graphic Designer & Digital Analyst

https://www.projektid.co/luke-anthony-houghton/
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