Blog · 7 articles
A handful of formulas answer most of the money questions in a small business: am I making a profit, what should I charge, how much do I need to sell, and was that spend worth it?
Each guide here explains one calculation with a formula, a worked example in rupees and the common mistakes, and links to a free calculator so you can try your own numbers.
Break-even is the level of sales at which your business stops losing money. Here is how to sort your costs, calculate it in units and rupees, and use it before you change a price or sign a lease.
Profit is worked out in three layers: what the goods earn, what the business earns after running costs, and what is left after interest and tax. Here is how to calculate each one for a month.
A practical walk-through of the inventory turnover calculation: where each number comes from, how to handle seasonal stock, how monthly and yearly figures differ, and how to work it out by category.
ROI tells you whether money spent on equipment, a renovation or marketing earned more than it cost. Here is how to measure it honestly, compare options and avoid the usual traps.
A useful sales target is worked out from what the month must pay for, tested against what you actually sell, and broken into numbers your counter can act on each day.
Margin divides profit by the selling price; markup divides it by the cost. Mixing them up is one of the most common pricing mistakes in small businesses. Here is how to tell them apart and use each one.
Customers see one price; your books need two numbers: the taxable value and the tax. Here is how to get from one to the other, and how discounts, rounding and margins fit in.
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