Business Formulas

Income Tax Expense

• Gross Profit × Tax Rate

• Net Income × Tax Rate

• Operating Income × Tax Rate

• Total Revenue × Tax Rate

Gross Profit

• Net Income - Cost of Goods Sold

• Total Revenue - Total Expenses

• Sales Revenue - Operating Expenses

• Net Income + Cost of Goods Sold

Net Income (Formula 1)

• Total Income - Cost of Goods Sold - Expenses

• Total Income + Cost of Goods Sold - Expenses

• Total Income - Expenses

• Total Income - Cost of Goods Sold + Expenses

Equity

• Assets + Liabilities

• Assets - Liabilities

• Assets / Liabilities

• Assets x Liabilities

Selling Price

• (Cost × Desired Profit Margin) + Cost

• Cost + Desired Profit Margin

• Cost × Desired Profit Margin

• Cost - Desired Profit Margin

Customer Retention Rate (CRR)

• [(E - N) / S] × 100

• (N / E) × 100

• (S - N) / E × 100

• (E + N) / S × 100

Customer Acquisition Cost (CAC)

• (Marketing Expenses + Sales Expenses) / Number of New Customers

• (Total Revenue - Total Expenses) / Number of New Customers

• (Sales Expenses - Marketing Expenses) / Number of New Customers

• (Marketing Expenses + Total Revenue) / Number of New Customers

Net Income (Formula 2)

• Gross Profit - Expenses

• Revenue - Cost of Goods Sold

• Total Income - Total Liabilities

• Operating Income - Taxes

Break-Even Point

• Total Monthly Cost / Selling Price

• Total Monthly Revenue - Total Monthly Cost

• Total Monthly Cost + Selling Price

• Total Monthly Cost / Total Monthly Revenue