ESB Financial Formulas

Run Rate

• (NET PROFIT / COST OF INVESTMENT) X (100)

• (MONTHLY REVENUE) X (12)

• CASH AT THE BEGINNING – CASH BALANCE AT THE END

• TOTAL CASH – TOTAL COST

Income Tax

• TOTAL MONTHLY COSTS / SALE PRICE PER UNIT

• TOTAL CASH – TOTAL COST

• CASH AT THE BEGINNING – CASH BALANCE AT THE END

• (GROSS INCOME) X (TAX RATE)

Income Tax

• (GROSS INCOME) X (TAX RATE)

• TOTAL MONTHLY COST/SELLING PRICE PER UNIT

• ASSETS-LIABILITIES

• SALES-COST

Net Profit

• [(COST) X (DESIRED PROFIT MARGIN)] + COST

• Assets - Liabilities

• SALES – COGS - EXPENSES

• SALES - COGS

Ending Cash Balance

• (NET PROFIT / COST OF INVESTMENT) X (100)

• (MONTHLY REVENUE) X (12)

• TOTAL CASH – TOTAL COST

• CASH AT THE BEGINNING – CASH BALANCE AT THE END

Gross Profit

• SALES – COGS - EXPENSES

• SALES - COGS

• Assets - Liabilities

• [(COST) X (DESIRED PROFIT MARGIN)] + COST

Selling Price:

• Assets - Liabilities

• SALES – COGS - EXPENSES

• [(COST) X (DESIRED PROFIT MARGIN)] + COST

• SALES - COGSS

CUSTOMER ACQUSITION COST

• (MARKETING COSTS+SALES COSTS)/NUMBER OF NEW CUSTOMERS

• ASSETS-LIABILITIES

Equity:

• Assets - Liabilities

• [(COST) X (DESIRED PROFIT MARGIN)] + COST

• SALES – COGS - EXPENSES

• SALES - COGS

Breakeven Point

• TOTAL CASH – TOTAL COST

• CASH AT THE BEGINNING – CASH BALANCE AT THE END

• (MONTHLY REVENUE) X (12)

• TOTAL MONTHLY COSTS / SALE PRICE PER UNIT