A budget turns a business plan into numbers. It shows whether income covers costs each month, how much buffer you have, and how long start-up costs take to earn back.
How to use the Business Budget Calculator
- Income – product or service 1 (monthly)
- Income – product or service 2 (monthly)
- Other operating income (monthly)
- Interest, grants and other non-operating income (monthly)
- One-time start-up costs
- Salaries and wages (monthly)
- Rent and utilities (monthly)
- Marketing (monthly)
- Other monthly expenses
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter monthly income from your products or services, any other income, one-time start-up costs, salaries and other monthly expenses.
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Income – product or service 1 (monthly) | Amount in your currency |
| Income – product or service 2 (monthly) | Amount in your currency |
| Other operating income (monthly) | Amount in your currency |
| Interest, grants and other non-operating income (monthly) | Amount in your currency |
| One-time start-up costs | Amount in your currency |
| Salaries and wages (monthly) | Amount in your currency |
| Rent and utilities (monthly) | Amount in your currency |
| Marketing (monthly) | Amount in your currency |
| Other monthly expenses | Amount in your currency |
What each result means
- Total monthly income = [Income – product or service 1 (monthly)] + [Income – product or service 2 (monthly)] + [Other operating income (monthly)] + [Interest, grants and other non-operating income (monthly)]
- Total monthly expenses = [Salaries and wages (monthly)] + [Rent and utilities (monthly)] + [Marketing (monthly)] + [Other monthly expenses]
- Monthly budget balance = [Total monthly income] – [Total monthly expenses]
- Yearly budget balance = [Monthly budget balance]×12
- Profit margin = [Monthly budget balance]÷[Total monthly income]×100
Example values
How the main result changes when Income – product or service 1 changes and everything else stays at the example values above:
| Income – product or service 1 (monthly) | Monthly budget balance |
|---|---|
| 6,000 | -1,900 |
| 9,000 | 1,100 |
| 12,000 | 4,100 |
| 15,000 | 7,100 |
| 18,000 | 10,100 |
| 24,000 | 16,100 |
Formula
Total income = operating income + non-operating incomeTotal expenses = salaries + monthly expensesBalance = income − expensesPayback (months) = one-time costs ÷ monthly balanceWorked example
Inputs — Income – product or service 1 (monthly): $12,000; Income – product or service 2 (monthly): $6,000; Other operating income (monthly): $1,000; Interest, grants and other non-operating income (monthly): $200; One-time start-up costs: $25,000; Salaries and wages (monthly): $9,000; Rent and utilities (monthly): $2,500; Marketing (monthly): $1,200; Other monthly expenses: $2,400.
Results — Total monthly income = $19,200.00; Total monthly expenses = $15,100.00; Monthly budget balance = $4,100.00; Yearly budget balance = $49,200.00; Profit margin = 21.35 %; Months to recover start-up costs = 6.1.
Frequently asked questions
What should a business budget include?
All income streams, fixed costs, variable costs, salaries and one-time costs.
How often should I update my budget?
Review it monthly against actual results and revise it each quarter.
What if my balance is negative?
Cut costs, raise prices or plan financing to cover the gap.
What formula does the Business Budget Calculator use?
Total income = operating income + non-operating income.