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Accurate calculations are essential to the financial health of any business. No matter if you’re planning the initial costs, determining your break-even point, or analyzing the potential value of an acquisition, you must utilize the right tools. Calculations can be straightforward or complicated but the results are important.

Start-up costs are the expenses necessary to establish an enterprise, which includes fixtures, office supplies, and equipment. Research expenses, which include analysis of the market and industry could also be included in the start-up costs. An accurate estimate of startup costs can be determined by reviewing the financial statements of businesses similar to yours in your industry or speaking with your accountant or bookkeeper for guidance on particular cost categories. It’s also recommended to include an insurance buffer, such as 10%, when calculating your initial costs to account for the unexpected.

Calculating your total costs will allow you to determine what profit, if any you can expect to earn after you’ve sold all your products or services. Calculate your cost of goods (COGS) by using a formula. This is an important figure when setting prices and determining your profit margin.

The best business calculators are easy to use and come with various functions. Some business calculators have built-in functions, such as amortization and interest rate conversions. Others may include visual graphs or connect to a computer for secure storage of calculations. There are also business calculators with more advanced options, like an NPV calculator, which employs the concept of discounted cash flow to calculate the net present value of future cash flows.