Cost of Doing Business Calculator
See at a glance what it costs to run your business. Enter annual revenue and your key expense categories to get total operating costs, operating margin, and the share each cost takes out of revenue.
Revenue minus all operating costs (profit before interest and tax)
78.6%
of revenuePayroll
45.8%
COGS
30.5%
Rent & utilities
9.2%
Marketing
6.4%
Insurance
3.1%
Other
5.1%
- 1
Total operating costs
180,000 + 120,000 + 36,000 + 25,000 + 12,000 + 20,000 = 393,000Payroll + COGS + Rent & utilities + Marketing + Insurance + Other - 2
Operating income
500,000 − 393,000 = 107,000
How does this calculator work?
Total operating costs = payroll + COGS + rent + marketing + insurance + other. Operating income = revenue − total costs. Operating margin = operating income / revenue × 100. Tracks what fraction of every revenue dollar is consumed by running the business, before interest and tax.
Formula
How this is calculated
Every business incurs a mix of direct costs (COGS — the materials and labour that go directly into the product or service sold) and indirect overhead costs (payroll for non-production staff, rent, marketing, insurance, and so on). Together they make up total operating costs, and subtracting them from revenue gives the operating income (also called EBIT before interest and tax).
The operating margin expresses that result as a percentage of revenue, making it easy to compare periods or benchmark against industry norms. The cost-to-revenue ratio (total costs / revenue) shows the flip side: how many cents of every revenue dollar are consumed by running the business. The overhead-to-revenue ratio isolates the non-COGS burden — useful for identifying whether fixed or semi-fixed costs are crowding out profit.
Note that this calculator covers operating costs only and does not account for depreciation, interest, or income tax; the operating income figure shown is therefore an approximation of EBITDA-like profit (not a legally compliant P&L). Use your accounting software for tax-compliant income statements. Figures are editable estimates — enter your own numbers.
Frequently asked questions
COGS (cost of goods sold) are costs that vary directly with production volume — raw materials, direct labour, manufacturing power. Overhead costs (rent, admin salaries, insurance, marketing) are incurred regardless of production level. Gross profit = Revenue − COGS; operating income = Gross profit − Overhead.
Operating margins vary enormously by industry. Grocery retail may run 2–4%; software companies 20–35%; professional-services firms 15–25%. Track your margin trend over time and compare to industry peers rather than a single universal benchmark.
No. Operating income shown here is before interest and tax (EBIT). To estimate net income, subtract interest expense on your debt and then apply your corporate tax rate to the pre-tax income. For tax-compliant figures consult a qualified accountant.
TG we-Calculate Editorial Team. (2026). Cost of Doing Business Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/cost-of-doing-business-calculator
TG we-Calculate Editorial Team. "Cost of Doing Business Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/cost-of-doing-business-calculator.
TG we-Calculate Editorial Team, "Cost of Doing Business Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/cost-of-doing-business-calculator
@misc{wecalculate_cost_of_doing_business_calculator, title = {Cost of Doing Business Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/cost-of-doing-business-calculator}}, year = {2026}, note = {TG we-Calculate} }
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