The business budget calculator is a tool for estimating the budget of your company. You can treat is as a business budget worksheet to plan out the budget for upcoming months or to quickly reassess your priorities. This calculator is pretty straightforward – you just have to input all values into appropriate boxes to obtain statistics that will indicate how profitable your business is.
Categories of the business budget calculator
Our business budget template is divided into a few categories for your convenience. This way, you can easily overview your budget and decide which categories require additional funds (or require a cut, for that matter). You can use it in two ways – either input the figures from the last month to get a better grasp of your expenses, or plan your ideal budget that you will try to stick to.
- Operating income: the main sources of your income. We created four fields here so that you can separate your streams of income (for example, if you sell mugs and offer a customized print at an extra fee, you can enter income from basic sales and from customization separately).
- Non-operating income: streams of income that are not primary, but also contribute to your business. They include interest from funds you have placed in bank deposits, or various grants and donations your business receives.
- One-time costs: this section applies to you only if you have not started a company yet. These costs are the initial costs of setting up your business and include categories such as equipment, furniture, initial marketing and the cost of building up an initial inventory.
- Salaries are a separate expenses category, because you might want to split it into a few subcategories for benefits or commissions your employees receive.
- Monthly expenses category includes all other expenses that you need to make on a monthly basis through the whole lifetime of your business. From rent and utilities, through insurances and leases, to travel costs and office supplies, all of these expenses decrease your monthly budget balance.
“Summary” section of the business budget worksheet
Filling out the whole business budget template was probably a lot of work. Now, you can take a look at the summary section at the bottom of the calculator. It will provide you with some statistics that will hopefully be useful for you.
- Initial investment is the same as the one-time costs. This is the money that you have to invest in your business before it can start bringing profit. Again, this applies to you only if your business is not running yet – otherwise you can safely ignore it.
- Total income is the monthly income, or revenue, that your company brings per month.
- Total expenses is the amount of money you need to spend every month. You should always have this kind of funds available to cover all monthly expenses.
- Budget balance is the most important number in this section. If your business is profitable, it will be a positive number. A negative number indicates that something is very wrong with your company, as it loses money instead of earning it. This kind of figure means that you should probably change your business model.
- Payback period is the time required to cover the costs of the initial investment. For example, if your budget balance is $2000 per month, and you initially invested $50,000 in your company, then you will get this money back after 25 months.