Cost of Doing Business Calculator

Estimate total monthly cost of doing business: fixed costs, variable costs, and cost per unit or as % of revenue.

Use the Cost of Doing Business Calculator

Enter fixed costs (rent, utilities, insurance, software, salaries) and variable costs. Add units and revenue for per-unit and % of revenue.

Fixed costs (monthly)

Variable & sales

Results

Total monthly cost
$25,725
Cost per unit
$26
Cost as % of revenue
102.9%

Breakdown

  • Salaries: $15,000
  • Variable (materials etc.): $5,000
  • Rent: $3,000
  • Payment processing: $1,025
  • Software: $800
  • Insurance: $500

What this means

Total cost of doing business is what you spend to operate each month. Comparing it to revenue shows how much margin you have before profit.

How to improve

Reduce fixed costs where possible, negotiate variable costs (e.g. processing, materials), and grow revenue so cost as % of revenue falls.

FAQs

What are fixed vs variable costs?
Fixed costs don’t change with volume (rent, salaries). Variable costs change with output or sales (materials, payment processing).
How do I use cost per unit?
Cost per unit = Total cost ÷ Units sold. It shows how much each unit carries in overhead and variable cost; use it for pricing and margin.
What if I don’t sell in units?
Use revenue as the denominator and focus on cost as % of revenue. You can still enter variable cost per unit as 0 and use processing % and fixed fee.

Related tools

Cost of Doing Business Calculator

Estimate total monthly cost of doing business: fixed costs, variable costs, and cost per unit or as % of revenue.

Use the Cost of Doing Business Calculator

Enter fixed costs (rent, utilities, insurance, software, salaries) and variable costs. Add units and revenue for per-unit and % of revenue.

Fixed costs (monthly)

Variable & sales

Results

Total monthly cost
$25,725
Cost per unit
$26
Cost as % of revenue
102.9%

Breakdown

  • Salaries: $15,000
  • Variable (materials etc.): $5,000
  • Rent: $3,000
  • Payment processing: $1,025
  • Software: $800
  • Insurance: $500

What this means

Total cost of doing business is what you spend to operate each month. Comparing it to revenue shows how much margin you have before profit.

How to improve

Reduce fixed costs where possible, negotiate variable costs (e.g. processing, materials), and grow revenue so cost as % of revenue falls.

FAQs

What are fixed vs variable costs?
Fixed costs don’t change with volume (rent, salaries). Variable costs change with output or sales (materials, payment processing).
How do I use cost per unit?
Cost per unit = Total cost ÷ Units sold. It shows how much each unit carries in overhead and variable cost; use it for pricing and margin.
What if I don’t sell in units?
Use revenue as the denominator and focus on cost as % of revenue. You can still enter variable cost per unit as 0 and use processing % and fixed fee.

Related tools