SME Calculators
100 essential business formulas, explained in plain English.
FREE reference — name, formula and explanation for each
This is a quick reference, not a set of interactive tools — plug your own numbers into these formulas yourself, or use them to understand what a report or calculator is actually showing you. For interactive calculators that do the maths for you, see CloudCount.
Who this serves: [Rob to write — who is this product for, and why them specifically]
Debtors, Creditors and Credit Risk (5)
Cash Flow and Liquidity (10)
Profitability and Margins (9)
Valuation and Investment (11)
Budgeting and Cost Control (5)
People and HR (14)
Logistics and Supply Chain (7)
Operations and Capacity (5)
Project Management (6)
Sales and Marketing (20)
Stock and Inventory (8)
Debtors, Creditors and Credit Risk
Debtor Days
Debtor Days = (Accounts Receivable / Total Credit Sales) x 365
Measures how long on average it takes a business to collect money from customers after a sale. Lower days mean faster cash collection.
Accounts Receivable Turnover
Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable
Shows how many times a business collects its average accounts receivable during a period. Higher turnover is better.
Creditor Days
Creditor Days = (Accounts Payable / Total Credit Purchases) x 365
Measures how long a company takes to pay its suppliers. Longer days mean more favourable cash flow.
Early Payment Discount Evaluator
Effective Annual Interest Rate = (Discount / (1 - Discount)) x (365 / (Full Allowed Payment Days - Discount Days))
Evaluates if it is financially better to take a supplier discount for early payment versus using the cash longer.
Customer Credit Risk Estimator
Credit Risk Score = Weighted score of payment history, credit rating, debt load, etc.
Assesses the financial reliability of customers, informing approval and payment term decisions.
Cash Flow and Liquidity
Free Cash Flow
Free Cash Flow = Operating Cash Flow - Capital Expenditures
Shows how much cash a business generates after accounting for major capital expenses, crucial for understanding financial flexibility.
Current Ratio
Current Ratio = Current Assets / Current Liabilities
Measures a company's ability to pay its short-term obligations with its short-term assets. A ratio above 1 is generally better.
Loan Payment (Amortisation) Calculator
Monthly Payment = P x (r(1+r)^n) / ((1+r)^n - 1), where P = loan principal, r = monthly interest rate, n = number of payments
Determines your fixed monthly loan payment amount over time.
Quick Ratio (Acid Test)
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Measures a company's ability to pay its current liabilities without relying on the sale of inventory, a stricter liquidity test.
Working Capital
Working Capital = Current Assets - Current Liabilities
Measures the short-term financial health of a business. Positive working capital is necessary to fund day-to-day operations.
Simple and Compound Interest
Simple Interest = Principal x Rate x Time. Compound Interest = Principal x (1 + Rate)^Time - Principal
Simple interest calculates interest on the principal only, while compound interest includes interest earned on previous interest.
Daily Cash Position Calculator
Daily Cash Position = Cash Inflows - Cash Outflows
Tracks daily liquidity to ensure operational solvency and manage payments.
Debt Coverage Ratio Calculator
Debt Coverage Ratio = Net Operating Income / Debt Service
Indicates how easily a business can repay its current debts using operating income.
Interest Coverage Ratio Calculator
Interest Coverage Ratio = Earnings Before Interest and Tax (EBIT) / Interest Expense
Shows how comfortably a business can pay the interest on its debt from operating earnings. A ratio below 1.5 to 2 is generally a warning sign.
Cash Conversion Cycle Calculator
Cash Conversion Cycle = Debtor Days + Inventory Days - Creditor Days
Shows how many days cash is tied up in the operating cycle, from paying for stock to collecting cash from customers. Shorter is better.
Profitability and Margins
EBITDA Calculator
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortisation
Measures a company's earnings before interest, taxes, depreciation, and amortisation, showing raw operational profitability.
Net Profit Margin Calculator
Net Profit Margin = (Net Profit / Revenue) x 100
Shows how much net income is generated as a percentage of revenue.
Operating Profit Margin Calculator
Operating Profit Margin = (Operating Profit / Revenue) x 100
Measures the proportion of revenue left after paying for variable production costs, such as wages and materials.
Cost of Goods Sold (COGS) Calculator
COGS = Opening Stock + Purchases - Closing Stock
Represents the direct costs attributable to producing goods sold by a company.
Dupont Analysis
ROE = Net Profit Margin x Asset Turnover x Equity Multiplier
Breaks down Return on Equity (ROE) into three components to better analyse financial performance.
Cost-to-Serve Calculator
Cost-to-Serve = Total Serving Costs / Number of Customers Served
Measures the cost of delivering products or services per customer, helping identify costly service models or unprofitable segments.
Gross Profit Margin Calculator
Gross Profit Margin % = (Gross Profit / Revenue) x 100, where Gross Profit = Revenue - Cost of Goods Sold
Shows what percentage of revenue is retained after direct production costs, before overheads.
Return on Assets (ROA) Calculator
ROA = Net Income / Total Assets
Measures how efficiently a business uses everything it owns to generate profit.
Return on Equity (ROE) Calculator
ROE = Net Income / Shareholders' Equity
Measures the return generated on the owners' own investment in the business. The Dupont Analysis calculator above breaks this figure down further.
Valuation and Investment
Net Present Value (NPV) Calculator
NPV = Sum of (Cash Inflow at time t / (1+r)^t) - Initial Investment
Measures the profitability of an investment by comparing cash inflows to the initial investment, discounted for time.
Debt-to-Equity Ratio Calculator
Debt-to-Equity Ratio = Total Liabilities / Shareholders' Equity
Shows how much debt a business has compared to its equity. Higher ratios mean more financial leverage.
Discounted Cash Flow (DCF) Calculator
DCF Value = Sum of (Future Cash Flows / (1+r)^t)
Estimates the value of an investment based on its expected future cash flows, discounted back to today's value.
Internal Rate of Return (IRR) Calculator
IRR is the discount rate that makes NPV = 0 (generally solved using a financial calculator or iterative software)
Helps measure the annual return expected from a project or investment. Higher IRR means a better investment.
Return on Investment (ROI) Calculator
ROI = (Net Profit / Investment Cost) x 100
Evaluates how efficient an investment is, showing the percentage return relative to its cost.
Time Value of Money Calculator
Future Value = Present Value x (1+r)^n
Explains that money today is worth more than the same amount in the future due to earning potential.
Payback Period Calculator
Payback Period = Initial Investment / Annual Cash Inflow
Tells you how long it will take for an investment to repay its initial cost.
Business Valuation Calculator (Multiple Methods)
P/E Multiple: Valuation = Net Profit x Chosen P/E Multiple. Asset-Based: Valuation = Total Assets - Total Liabilities. ARR-Based: Valuation = ARR x ARR Multiple. EBITDA-Based: Valuation = EBITDA x Valuation Multiple. Liquidation: Valuation = Estimated Liquidation Value of Assets
Allows a business to be valued in several ways depending on type and stage, financial, revenue, or asset-driven.
Harvest Calculations
Harvest Value = Business Valuation - Exit Costs - Outstanding Debt
Estimates the owner's net gain from selling the business, factoring in all deductions.
Retirement Calculations
Years Sustainable = Total Retirement Funds / Annual Personal Draw
Estimates how long retirement funds will last based on desired yearly spending.
Self-Funded Growth Rate
Self-Funded Growth Rate = (Net Income x Retention Rate) / Total Assets
Estimates how fast a company can grow using only internally generated funds. Note: this is a simplified estimate of the Internal Growth Rate. The full textbook formula divides by (1 minus Return on Assets times Retention Rate) as well, which this simplified version omits.
Budgeting and Cost Control
Break-even Point Calculator
Break-even Sales Volume = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
Tells you how many units must be sold to cover all fixed and variable costs, no profit, no loss.
Budget to Actual Ratios
Budget Variance % = ((Actual - Budgeted) / Budgeted) x 100
Compares actual results to budgeted targets, identifying overspending or underspending.
Expenses Ratio Analysis
Expense Ratio = (Total Expenses / Total Revenue) x 100
Measures what percentage of income is spent on operating costs.
Scenario Analysis Calculator (Best/Worst Case)
Scenario Output = Variable inputs (Best / Base / Worst) applied to Revenue, Cost, or Profit
Helps businesses forecast outcomes under different assumptions, identifying best- and worst-case impacts.
Business Model Stress Test Calculator
Custom scenarios applied to Revenue, Cost, Client Retention, or Margin levels, producing a Projected Business Impact
Evaluates how resilient a business model is under stress, such as an economic shock, customer loss, or cost spike.
People and HR
Absenteeism Impact Calculator
Absenteeism Rate = (Total Days Absent / Total Work Days Available) x 100
Calculates absenteeism's impact on business productivity.
Annual Leave Accrual Calculator
Leave Accrued = Leave Days Earned per Month x Months Worked
Calculates how much annual leave an employee has earned over time.
Employee Productivity Ratio Calculator
Productivity Ratio = Total Output / Total Input (Hours Worked)
Measures how much output is produced per unit of input, such as labour hours.
Employee Retention and Turnover Rate Calculator
Employee Turnover Rate = (Employees Left During Period / Average Number of Employees) x 100
Shows how many employees leave the business within a given timeframe, affecting workforce stability.
Employee ROI Calculator
Employee ROI = Employee Contribution (Revenue or Profit) / Employee Cost
Measures the return generated for every unit spent on an employee's salary, benefits, and training.
Employee Turnover Rate Calculator
Turnover Rate = (Number of Departures / Average Number of Employees) x 100
Another way to express turnover, reinforcing workforce stability analysis.
Recruitment Cost Per Hire Calculator
Cost Per Hire = Total Recruitment Costs / Number of New Hires
Measures the efficiency of recruitment strategies by showing how much it costs to hire each new employee.
Remote Team Management Overhead Calculator
Remote Overhead Cost = Software Costs + Remote Stipends + Virtual Management Expenses
Calculates the real overhead costs of managing a remote workforce.
Training Budget Estimator
Training Budget = Number of Employees x Training Cost per Employee
Helps plan the overall budget needed for employee training programmes.
Training ROI Calculator
Training ROI % = ((Training Benefits - Training Costs) / Training Costs) x 100
Measures the financial return gained from investing in employee training programmes.
Workforce Productivity Trend Tracker
Productivity Trend = ((Output This Period - Output Last Period) / Output Last Period) x 100
Tracks whether workforce productivity is improving or declining over time.
Employee Productivity Value Calculator
Productivity Value per Employee = Total Revenue / Number of Employees
Measures the average revenue generated by each employee.
Overtime Cost Estimator
Overtime Cost = Overtime Hours x Overtime Rate per Hour
Calculates the additional labour cost for employees working beyond regular hours.
Labour Cost Percentage Calculator
Labour Cost % = (Total Labour Cost / Total Revenue) x 100
Shows what share of revenue is spent on wages and related staff costs, a key cost-control benchmark by industry.
Logistics and Supply Chain
Import Duties and Tariffs Estimator
Total Import Cost = Item Cost + (Tariff % x Item Cost) + Shipping Fees
Helps businesses estimate full landed costs for imported goods.
Route Optimisation Savings Calculator
Savings = Old Route Cost - Optimised Route Cost
Shows the savings achieved by optimising logistics and delivery routes.
Warehouse Space Usage Calculator
Space Utilisation % = (Used Warehouse Space / Total Available Warehouse Space) x 100
Measures how efficiently warehouse space is being used.
Fuel Cost Impact Calculator
Fuel Cost Impact = Distance Travelled x Fuel Consumption Rate x Fuel Price per Litre
Calculates how much fuel costs affect logistics and transport operations.
Order Fulfilment Assessment
Order Fulfilment Rate % = (Orders Fulfilled on Time / Total Orders) x 100
Measures how efficiently customer orders are processed and delivered on time.
Lead Time Variance Calculator
Lead Time Variance = Actual Lead Time - Planned Lead Time
Highlights any delays between expected and actual supply or production times.
Supplier Dependence Risk Calculator
Supplier Dependence % = (Purchases from Supplier / Total Purchases) x 100
Measures how dependent your business is on a single supplier, helping to assess supply chain risk.
Operations and Capacity
Capacity Utilisation Rate Calculator
Capacity Utilisation % = (Actual Output / Maximum Possible Output) x 100
Shows how much of a company's production capacity is being used efficiently.
Machine Downtime Cost Calculator
Downtime Cost = Hourly Cost of Machine x Hours of Downtime
Quantifies the financial impact of machine breakdowns or maintenance stoppages.
Machine Utilisation Calculator
Machine Utilisation % = (Actual Running Hours / Total Available Hours) x 100
Measures the efficiency of equipment usage during available operating hours.
Maintenance Cost Estimator
Total Maintenance Cost = Labour Cost + Parts Cost + Other Overheads
Provides an estimate of total maintenance expenses for equipment and machinery.
Outsourcing Cost Comparison Calculator
Cost Difference = In-house Cost - Outsourced Cost
Helps evaluate whether outsourcing a task or process is financially beneficial compared to doing it internally.
Project Management
Man-Hour Project Cost Estimator
Total Man-Hour Cost = Man-Hours Worked x Hourly Labour Rate
Calculates total labour costs based on hours worked and hourly rates for a project.
Project Budget Variance Calculator
Budget Variance = Actual Project Cost - Planned Project Budget
Shows how much a project went over or under budget.
Project Comparison Report
Project Score = Weighted ratings of Cost, Time, Quality and ROI
Allows comparing multiple projects based on customisable weightings for cost, time, quality, and return.
Project Completion Percentage Calculator
Completion % = (Actual Work Completed / Total Work Planned) x 100
Tracks project progress as a percentage of total planned work.
Project Man-Hour Budget vs Actual Report
Variance = Actual Man-Hours Used - Budgeted Man-Hours
Measures whether a project is using more or fewer labour hours than originally budgeted.
Project Costs Budget vs Actual Report
Variance = Actual Costs - Budgeted Costs
Tracks financial control of a project by comparing actual spend to the budget.
Sales and Marketing
Advertising ROI Calculator
Advertising ROI % = ((Revenue from Campaign - Campaign Cost) / Campaign Cost) x 100
Measures the return generated from marketing or advertising spending.
Annual Recurring Revenue (ARR) Calculator
ARR = Average Monthly Recurring Revenue x 12
Projects total recurring revenue for subscription-based businesses over a year.
Calculate Sales Ratios
Sales Ratio = Sales / Leads Generated
Measures the efficiency of your sales funnel, what percentage of leads turn into sales.
Conversion Rate Calculator
Conversion Rate % = (Conversions / Visitors or Leads) x 100
Measures the percentage of visitors or leads that take a desired action, such as buying or signing up.
Cost per Lead (CPL) Calculator
CPL = Total Marketing Spend / Number of Leads Generated
Determines how much it costs to acquire a new lead through marketing activities.
Customer Acquisition Cost (CAC) Calculator
CAC = Total Sales and Marketing Expenses / Number of New Customers Acquired
Calculates the average cost of gaining a new customer.
Customer Lifetime Value (CLV) Calculator
CLV = Average Purchase Value x Purchase Frequency x Customer Lifespan
Estimates the total value a business can expect from a customer relationship over its duration.
Dynamic Pricing Margin Calculator
Dynamic Margin = Selling Price - Variable Costs
Helps businesses dynamically adjust selling prices while maintaining a target profit margin.
Lead-to-Customer Conversion Calculator
Lead-to-Customer Conversion Rate = (Customers Acquired / Total Leads) x 100
Measures how effective your sales process is at converting leads into paying customers.
Market Share Calculator
Market Share % = (Company Sales / Total Industry Sales) x 100
Calculates what percentage of an industry's total sales are captured by your business.
New Product Breakeven Units Calculator
Breakeven Units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
Tells you how many units of a new product need to be sold to cover all costs.
Pricing Sensitivity Calculator
Elasticity = Change in Quantity Demanded % / Change in Price %
Measures how sensitive customers are to changes in price.
Sales Analysis - Budget vs Actual
Sales Variance % = ((Actual Sales - Budgeted Sales) / Budgeted Sales) x 100
Tracks how well actual sales compare to budgeted projections.
Sales Commission Estimator
Commission = Sales Volume x Commission Rate
Calculates total commission payable to a salesperson based on their sales performance and rate.
Sales Conversion Ratio Calculator
Conversion Ratio = Closed Deals / Total Leads
Measures the efficiency of the sales team in turning leads into customers.
Sales Growth Rate Calculator
Sales Growth Rate = ((Current Period Sales - Previous Period Sales) / Previous Period Sales) x 100
Tracks how much sales have increased or decreased over a given period.
Sales Pipeline Value Calculator
Pipeline Value = Sum of (Deal Value x Probability of Closing)
Calculates the expected value of all deals in progress weighted by probability of success.
Sales Target vs Actual Calculator
Achievement % = (Actual Sales / Sales Target) x 100
Compares actual sales performance to set targets.
Upsell Potential Calculator
Upsell Value = Number of Upsells x Average Upsell Value
Estimates potential revenue from upselling existing customers.
Competitor Pricing Comparison Tool
Relative Price Index = (Your Price / Competitor Price) x 100
Helps monitor pricing competitiveness in the market.
Stock and Inventory
Inventory Turnover Calculator
Inventory Turnover = Cost of Goods Sold / Average Inventory
Measures how many times inventory is sold and replaced over a given period, a key indicator of operational efficiency.
Economic Order Quantity (EOQ) Calculator
EOQ = square root of ((2 x Demand x Order Cost) / Holding Cost)
Helps determine the ideal order quantity that minimises total inventory costs.
Reorder Point Calculator
Reorder Point = Average Daily Usage x Lead Time in Days
Indicates when to reorder stock before running out.
Shrinkage Loss Calculator
Shrinkage % = ((Recorded Inventory - Actual Inventory) / Recorded Inventory) x 100
Estimates inventory lost due to theft, damage, or administrative errors.
Stock Reorder Point Calculator
Reorder Point = Average Usage x Lead Time
Same measure as the Reorder Point Calculator, useful for frequent or seasonal stock reviews.
ABC Analysis: Stock Item Sales
Rank items by sales value, then categorise: A = top 20% of cumulative value, B = next 30%, C = last 50%
Prioritises inventory based on sales importance, helps optimise attention and stock levels. Note: this bands items by their share of total sales value. The more common convention bands by share of item count instead (e.g. the top 20% of items typically driving about 80% of value) - both are valid, this page uses the value-share version.
Gross Margin Return on Inventory Investment (GMROI)
GMROI = Gross Profit / Average Inventory Cost
Shows how much gross profit is earned for every unit invested in inventory, a key retail metric.
Inventory Days (Days Inventory Outstanding)
Inventory Days = (Average Inventory / Cost of Goods Sold) x 365
Shows how many days on average stock sits before it is sold. Complements Inventory Turnover and feeds the Cash Conversion Cycle.