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Finance & Profit Calculators

These calculators help you forecast revenue, track expenses, and measure profitability, giving you clear insights so you can grow with confidence.

Customer Lifetime Value (LTV) Calculator
Startup Burn Rate & Runway Calculator
Salary Allocation Calculator
Break-Even Calculator
Gross Margin / Markup Calculator
Contribution Margin Calculator
EBITDA Calculator
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Customer Lifetime Value (LTV) Calculator

Calculate Your Customer's Lifetime Value

Definition of Customer Lifetime Value LTV or CLV

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 The Customer Lifetime Value Calculator

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

Example of How to Calculatre Customer Lifetime Value

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.

Startup Burn Rate & Runway Calculator

Calculate Burn Rate and Runway

Definition of Burn Rate

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 The Burn Rate Calculator

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

Example of How to Calculate Burn Rate/Runway

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

Burn Rate and Runway Formulas

Burn Rate: Cash spent per month = (Starting Cash – Ending Cash) / Number of Months

Runway: How many months your cash will last = Current Cash / Monthly Burn Rate

Break-Even Calculator

Calculate Break-Even Units

Definition of Break-Even

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 The Break-Even Calculator

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

Example of How to Calculate Break-Even

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

Break-Even 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.

Note: If you want to break down fixed costs and allocate salaries for project timing, you can adjust for salary increases or decreases using a growth/reduction factor.

Salary Allocation Projection

Definition of Salary Allocation

This tool projects the salary allocation to a specific project over a given time horizon, taking into account an annual growth or reduction factor. It helps forecast both annual and monthly project costs associated with salaries.

Example of How to Calculate Salary Allocation

Adjusted Salary Year n = Salary × (1 + Growth Rate)ⁿ
Allocated Annual = Adjusted Salary × Allocation %
Allocated Monthly = Allocated Annual ÷ 12

Salary Allocation Example

Annual Salary: $120,000
Allocation: 50%
Growth Rate: 5% per year
Time Horizon: 3 years

Year 1: Adjusted Salary = 120,000 × (1+0.05)¹ = 126,000 → Allocated Annual = 63,000 → Allocated Monthly = 5,250
Year 2: Adjusted Salary = 126,000 × 1.05 = 132,300 → Allocated Annual = 66,150 → Allocated Monthly = 5,512.50
Year 3: Adjusted Salary = 132,300 × 1.05 = 138,915 → Allocated Annual = 69,457.50 → Allocated Monthly = 5,788.13
Gross Margin & Markup Calculator

Calculate Margin & Markup

1. Calculate Margin / Markup

2. Calculate Price from Desired Margin / Markup

3. Calculate Cost from Desired Margin / Markup

Definition of Gross Margin and Markup

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 The Gross Margin and Markup Calculator

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

Example of How to Calculate Gross Margin and Markup

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

Gross Margin and Markup Formulas

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

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

Contribution Margin Calculator

Definition of Contribution Margin

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

How to Use The Contribution Margin Calculator

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

Contribution Margin Formula

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

Example of How to Calculate Contribution Margin

Sales Revenue: $100
Variable Costs: $60
Contribution Margin = (100 – 60) ÷ 100 × 100 = 40%
EBITDA Calculator

Definition of EBITDA

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.

EBITDA Formula

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

Example of How to Calculate EBITDA

Net Income = $500,000
Interest = $50,000
Taxes = $100,000
Depreciation = $30,000
Amortization = $20,000
EBITDA = $700,000