These calculators are available anytime, anywhere.
Each calculation can provide on-demand insight into your business.
Cost of Goods Sold
Costs of Goods Sold represent the expenses related to the goods you manufacture or purchase and then sell over a certain period.
Use your Cost of goods sold number and total sales number to determine your gross profit.
Cost of Goods Calculator
At the beginning of the month, your retail shop has 100 scented candles in store, each valued at $20.00 (that’s $2,000 worth of candles).
Then, at some point during the month, you purchase another 50 candles to add to the Inventory (that’s $1,000 worth of candles).
By the end of the month, you have sold 70 candles and have 80 left (that’s $1,600 worth of candles). Plugging these numbers into the calculator, you can calculate the cost of goods sold: $2,000 + $1,000 – $1,600 = $1,400
Gross profit is the difference between your total sales income and your cost of goods sold:
Gross profit is valuable because it shows whether a business needs to be more or less cost-effective compared to its revenue.
For example, if gross profit decreases due to a spike in shipping costs, you could try to switch to a cheaper shipping service or reduce the weight of your product packaging.
Gross Profit Calculator
Remember those scented candles you had in your retail shop? Let’s say your total sales of candles for last month was $2,100. We’ve already calculated your cost of goods sold above, so you can quickly determine your gross profit: $2,100 – $1,400 = $700
Your previous month’s gross profit was $700.
The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business.
It tells you how much of your product or service you need to sell to cover your operating costs. The moment you exceed your break-even point, your business becomes profitable.
Fixed costs are expenses that typically stay the same each month, while variable costs change in proportion to how much a business produces or sells.
Finding your break-even point can help you price your products.
This is an essential calculation in your business plan for any new business. For existing businesses, this can be a valuable tool for analyzing costs and evaluating profits earned at different sales volumes.
Break-Even Point Calculator
Say you own a furniture shop, and your fixed costs total $4,000/month.
You want to know how many accent chairs you need to sell to break even. Your fixed costs total is $4,000, your variable costs per unit are $250, and your sales price per unit is $750. Plug your totals into the break-even formula to determine your unit break-even point.
$4,000 ÷ ($750 – $250) = 8 units.