Business studies
Business studies calculators
VAT, markup, allocations, depreciation and financial ratios: the calculations a business course rests on and that running a company needs every day.
Which calculation you need
The VAT calculation is the most frequent of all, and the mode that matters is removing it: taking the tax out of a total is not done by subtracting the percentage but by dividing, and that is the error repeated most often. Markup and margin answer the same question about the selling price from two different bases — the cost for the first, the price for the second — and confusing them means misstating profitability by a third. Proportional allocation divides an amount by given quotas, directly when a larger quota deserves a larger share and inversely in the opposite case. Depreciation spreads the cost of a fixed asset over the periods of use, with three methods that change when the cost falls but not how much falls in total. Financial ratios, finally, read a company's profitability and liquidity: ROE, ROI and ROS from the return side, current and quick ratio from the solvency side.
VAT calculator
Add or remove VAT, with the common statutory rates one tap away.
Markup and margin
Selling price from cost and markup or margin, with both figures always side by side.
Proportional allocation
Dividing an amount into parts proportional to the quotas, directly or inversely.
Asset depreciation
Depreciation schedule by straight line, declining balance or sum-of-years digits.
Financial ratios
ROE, ROI, ROS, gearing and liquidity ratios, with a reading of the result.
Accruals and deferrals
Accrued or deferred, income or expense: the share for the year and the year-end journal entries.
NPV and IRR
Net present value, internal rate of return and payback period of an investment.
Current account interest
Daily-balance interest on a current account: credit and debit products, tax and closing balance.
Bill discounting
Bank discount, true discount and compound discount, net proceeds and effective rate of a discounted bill.
Late payment interest
Interest on an invoice or a debt paid late, from the days overdue and the rate.
Contribution margin
Unit and total contribution margin, break-even point, margin of safety and operating leverage.
Economic order quantity
The order size that minimises costs (Wilson formula), orders per year, costs and reorder point.