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Business Expense Calculator

Estimate your total business expenses, monthly profit and expense ratio based on revenue and common operating costs.

Your Details

Overview

A business expense calculator helps you estimate your monthly operating costs and see how they compare with revenue. Enter your monthly revenue along with major costs such as rent, payroll, utilities, marketing and other operating expenses to get a simple view of expenses, profit and margins.

How it works

The calculator adds together the monthly expense categories you enter to estimate total monthly business expenses. It then subtracts those expenses from monthly revenue to estimate profit. The expense ratio is calculated by dividing total expenses by revenue, while profit margin is calculated by dividing profit by revenue. These results help you see how much of your income is being used to run the business.

How to use this calculator

  1. 1Enter your average monthly revenue.
  2. 2Add your monthly rent or premises cost.
  3. 3Enter payroll, utilities and marketing costs.
  4. 4Include any other regular operating expenses.
  5. 5Review your total expenses, estimated profit and expense ratio.

Example Calculation

Monthly Revenue

$20,000

Rent or Premises Cost

$2,500

Payroll Cost

$8,000

Utilities and Bills

$600

Marketing Cost

$1,200

Other Operating Costs

$1,800

Total Monthly Expenses

$14,100

With monthly revenue of 20000 and total monthly expenses of 14100, the estimated monthly profit is 5900. The expense ratio is 70.5% and the profit margin is 29.5%.

Frequently asked questions

What does this business expense calculator estimate?

It estimates your total monthly operating expenses, monthly profit, expense ratio and profit margin based on the figures you enter.

Which expenses should I include?

Include regular business costs such as rent, payroll, utilities, marketing and any other recurring operating expenses.

Does this calculator include tax?

It does not apply tax automatically. For best results, enter all figures on a consistent before-tax or after-tax basis.

Can I use this calculator for a small business or freelancer business?

Yes. It can be used for many types of businesses as long as you enter your average monthly revenue and costs.

What if my income changes each month?

Use an average month or run the calculator multiple times with different scenarios to compare results.

What does the expense ratio show?

It shows what percentage of your revenue is being used to cover expenses, which can help you assess cost efficiency.

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Assumptions and warnings

Assumptions

  • All figures are entered for a single average month.
  • Only the expenses you enter are included in the result.
  • Revenue and costs are treated as pre-tax estimates unless you choose to enter post-tax figures consistently.
  • The calculator does not include seasonal variation, financing costs or one-off items unless added to other costs.

Warnings

  • This calculator provides an estimate only and is not financial advice.
  • Business decisions should consider taxes, debt, cash flow timing and other costs not shown here.