Financial and Profitability Calculators

Gain peace of mind knowing your team’s performance, productivity, and costs are clear, fair, and actionable. 

• Customer Lifetime Value LTV Calculator

• Startup Burn Rate & Runway Calculator

• Break-Even Calculator

• Gross Margin/Markup Calculator

• Contribution Margin Calculator

• EBITDA Calculator

Definition:
Customer Lifetime Value (LTV) estimates the total revenue a customer is expected to generate for your business over the entire relationship. It’s a key metric for understanding profitability, guiding marketing spend, and making strategic growth decisions.

How to Use It:

1. Enter the average revenue per customer (per period, e.g., month or year). 
2. Enter the gross margin as a percentage. 
3. Enter the average customer lifespan (in the same period units). 
4. The calculator will show the total value a customer brings over their lifetime.
    

Example:

• Average Revenue per Customer: $1,000/year 
• Gross Margin: 70% 
• Average Customer Lifespan: 5 years 
• LTV = 1,000 × 0.7 × 5 = $3,500
   

Use this tool to make smarter decisions about customer acquisition, retention, and overall business strategy.

Definition:
Burn Rate shows how much cash your startup spends each month, and Runway tells you how many months your current cash will last. Together, they help you understand financial health and plan your next moves.

How to Use It:

1. Enter starting and ending cash over a period to calculate monthly burn rate. 
2. Enter current cash to see your runway — how long your business can operate before needing more funding.
    

Example:

• Starting Cash: $200,000 
• Ending Cash: $150,000 
• Number of Months: 3 
• Current Cash: $150,000 
• Monthly Burn Rate = (200,000 – 150,000) ÷ 3 = $16,666.67 
• Runway = 150,000 ÷ 16,666.67 ≈ 9 months
   

This calculator helps you plan funding, adjust expenses, and ensure your startup stays on track.

Definitions & Formulas:

Burn Rate = Cash spent per month 

Burn Rate = (Starting Cash – Ending Cash) / Number of Months

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Runway = How many months your cash will last 

Runway (months) = Current Cash / Monthly Burn Rate

Definition:
Break-even analysis tells you how many units you need to sell to cover all fixed and variable costs. It’s a key metric for pricing, planning, and understanding when your business starts making a profit.

How to Use It:

1. Enter your fixed costs (rent, salaries, overhead). 
2. Enter the selling price per unit. 
3. Enter the variable cost per unit (materials, production, shipping). 
4. The calculator will show the number of units you must sell to break even.
    

Example:

• Fixed Costs: $5,000 
• Selling Price per Unit: $50 
• Variable Cost per Unit: $30 
• Break-Even Units = 5,000 ÷ (50 – 30) = 250 units

Formula:

Break-Even Units = Fixed Costs / (Selling Price per Unit−Variable Cost per Unit)
 

Knowing your break-even point helps you set sales goals, price products correctly, and plan growth with confidence.

Definition:
Gross Margin and Markup help you understand how much profit you make on each product. Gross Margin shows the percentage of revenue that’s profit after costs, while Markup shows how much you increase the cost to reach the selling price.

How to Use It:

1. Enter the cost of your product or service. 
2. Enter the selling price. 
3. The calculator will show both Gross Margin (%) and Markup (%) instantly.
    

Example:

• Cost: $30 
• Selling Price: $50 
• Gross Margin = (50 – 30) ÷ 50 × 100 = 40% 
• Markup = (50 – 30) ÷ 30 × 100 = 66.67%
   

Use this tool to price products correctly, ensure profitability, and make smarter business decisions.

Formulas:

• Gross Margin (%) = (Selling Price – Cost) / Selling Price × 100
   
• Markup (%) = (Selling Price – Cost) / Cost × 100

Contribution Margin Calculator

Definition:
Contribution margin is the amount of revenue remaining after subtracting variable costs. It shows how much money is available to cover fixed costs and generate profit.

Examples of Variable Costs:
Variable costs are expenses that change directly with the production or sales volume. Common examples include:

• Raw materials – the components used to make your product 
• Direct labor – wages for workers who produce the product
  Shipping and packaging – costs that increase with the number of units sold 
• Sales commissions – commission paid per sale 
• Credit card or transaction fees – fees that scale with each sale 
• Utilities for production – electricity or gas used in manufacturing that varies with output

How to Use:
Enter your total sales revenue and total variable costs in the calculator to see your contribution margin percentage.

Formula:
Contribution Margin (%) = (Sales Revenue – Variable Costs) ÷ Sales Revenue × 100

Example:
If your product sells for $100 and the variable cost is $60, your contribution margin is (100 – 60) ÷ 100 × 100 = 40%.

EBITDA Calculator

Definition:
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a measure of a company’s operating performance and profitability before accounting for financial and non-cash expenses. CEOs and investors often use EBITDA to compare companies without the effects of financing or accounting decisions.

Formula:

EBITDA = Net Income+Interest + Taxes + Depreciation+  Amortization Income 

Example:
Suppose your company has:

• Net Income = $500,000 
• Interest = $50,000 
• Taxes = $100,000 
• Depreciation = $30,000 
• Amortization = $20,000
   

EBITDA = 500,000 + 50,000 + 100,000 + 30,000 + 20,000 = 700,000

Your EBITDA is $700,000, showing your company’s core operating profitability.