Business Expenses Calculator

Add your fixed costs, variable costs, and periodic bills to estimate your average monthly and annual business expenses. Annual and quarterly costs are automatically converted to monthly equivalents so they are included in the total.

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Fixed Monthly Expenses
Costs that are generally stable from month to month and do not directly change with sales volume.
Total Fixed Expenses $0.00
Variable Expenses
Costs that can change from month to month based on sales, activity, usage, or business needs. Enter your typical or expected monthly cost.
Total Variable Expenses $0.00
Periodic / Annual Expenses
Costs billed less often than monthly — converted to a monthly equivalent automatically, so nothing gets left out of your real monthly average.
Total Periodic Expenses $0.00
Monthly equivalent spreads each expense across the year: Annual ÷ 12, Semiannual ÷ 6, or Quarterly ÷ 3.
Adds the expense to Fixed Monthly Expenses with the name and category pre-filled. If it is variable or periodic, add it from the appropriate section instead.
Business Expense Summary
One or more expense amounts couldn't be read and are being treated as $0. Check the fields outlined in red above.
$0.00
Total Monthly Expenses
$0.00
Annualized Expenses
$0.00
Fixed / Month
$0.00
Variable / Month
$0.00
Periodic / Month Equiv.
$0.00
Average Daily Cost
Annualized expense total based on your monthly-equivalent costs.
Expense Breakdown by Category
Every expense across all three tables, grouped by category and converted to its monthly equivalent.
Category Monthly Annualized % of Expenses

Related

Break-Even Profit Margin Cash Flow

How business expenses are calculated

Three types of costs help build a complete picture of business expenses. Fixed expenses are generally stable from month to month and do not directly change with sales volume, such as rent, salaries, and recurring subscriptions. Variable expenses can change based on sales, activity, usage, or other business needs, such as inventory, shipping, advertising, and payment processing. Periodic expenses are billed less often than monthly, such as annual insurance, quarterly maintenance, or license renewals.

Monthly Business Expenses
Fixed Expenses + Variable Expenses + Periodic Expenses (Monthly Equivalent)
Annual Business Expenses
Annualized Business Expenses = Monthly Business Expenses × 12

For example, suppose fixed and variable expenses total $17,200 per month. Add $3,600 in annual insurance ($3,600 ÷ 12 = $300/month), $1,200 in annual accounting ($1,200 ÷ 12 = $100/month), $600 in quarterly equipment maintenance ($600 ÷ 3 = $200/month), and a $300 annual business license ($300 ÷ 12 = $25/month). The periodic costs add $625 to the monthly equivalent, giving total average monthly expenses of $17,825.

Frequently asked questions

Why separate fixed, variable, and periodic expenses?

Because they behave differently and matter for different decisions. Fixed costs show the baseline expenses that generally remain even when sales change. Variable costs help show how expenses can change as sales, activity, or usage changes. Periodic costs are easy to overlook because they do not appear in every month's bills, even though they are still part of the business's overall cost structure.

Why convert quarterly and annual expenses to a monthly equivalent?

Because the average monthly cost should account for expenses even in months when they are not actually paid. Budgeting off only the months where bills show up tends to underestimate true costs and can leave a business short when the annual renewal or quarterly invoice actually arrives.