Business Finance Calculators
Margins, break-even, NPV and IRR, rental property returns and debt-service coverage.
Calculators
- Profit Margin and Markup Calculator
Price, cost, margin and markup from any two, with the difference explained.
- Break-Even Calculator
Units and revenue needed to cover fixed costs, with contribution margin.
- NPV and IRR Calculator
Net present value and internal rate of return for periodic cash flows, with root checks.
- Rental Property Calculator
Cash flow, cap rate and cash-on-cash return from rent, vacancy, expenses and financing.
- Business Loan DSCR Calculator
Debt-service coverage ratio and the loan payment your cash flow supports at a target DSCR.
Which business calculator answers your question
These calculators cover pricing, sales volume, investment decisions and borrowing capacity. The formulas are standard; the answers depend on the costs you enter, so start by separating fixed costs from per-unit costs.
- What price gives the margin I want?
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Profit Margin and Markup Calculator
Moves between cost, price, margin and markup, and converts one percentage into the other.
- How many units do I need to sell?
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Break-even units and revenue from fixed costs, price and variable cost per unit, plus the volume for a target profit.
- Is this project worth the outlay?
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Net present value at your discount rate, each internal rate of return found in the search range, MIRR and payback.
- Does this rental property pay?
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Net operating income, cap rate, cash flow after the mortgage and cash-on-cash return, from rent, vacancy and operating costs.
- How large a loan can the business carry?
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Debt-service coverage for a proposed loan, or the largest loan that holds coverage at a ratio you set.
Have these to hand
- Fixed costs per period and variable cost per unit, kept apart.
- Projected cash flows by period, starting with the upfront outlay as a negative number.
- For property, operating expenses and a vacancy allowance; for coverage ratios, existing annual debt payments.
Mistakes that change the answer
- Mixing up margin and markup. A 50% markup on cost is a 33.3% margin on price.
- Ranking projects by IRR alone when cash flows change sign more than once; there may be several IRRs, or none.
- Leaving repairs and capital reserves out of a rental estimate, which flatters every return figure.
Related guides
- Rental property cash flow: NOI, cap rate, cash-on-cash and DSCR
Follow one example duplex from scheduled rent to net operating income to cash flow, see why its cap rate, cash-on-cash return and DSCR disagree, and find out how little it takes to turn the cash flow negative.
- Margin vs. markup: formulas, conversion chart and discounts
Margin and markup divide the same profit by different numbers. How to convert one to the other, set a price for a target margin, and work out what a discount really costs.
- How loan amortization works, with a worked schedule
The payment formula, how each payment splits between interest and principal, why the last payment is off by a few cents, when principal overtakes interest on a long loan, and what extra payments and negative amortization do to the schedule.
- Nominal vs. real returns: adjusting savings for inflation
How to turn a nominal return into a real one, when subtracting inflation goes wrong, and how to show a 30-year savings projection in today’s dollars.
- What’s included in a mortgage payment: PITI, PMI and escrow
The parts of a monthly housing payment, worked through for a $360,000 home with 5% down: what each part costs, which parts change, and the payment on which PMI drops off.
- How to compare loan offers: APR, fees and total cost
Match the offers on cash received and term, then compare APR and total cost. A worked $15,000 example shows how fees, longer terms and early payoff can change which offer is cheaper.