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How to use
- Enter Business expenses.
- Enter Revenue.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Expense rate = expenses ÷ revenue × 100
Example
Expenses of 25,000 on revenue of 100,000 equal a 25% expense rate and leave 75,000 before taxes or personal draws.
Important notes
Separate business expenses from personal spending and keep the same period; mixing them makes the ratio less useful for pricing and planning.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Expense rate | 25000 ÷ 100000 × 100 | 25 % |
| Remaining | 100000 − 25000 | 75,000 |
Frequently asked questions
Are taxes a business expense?
That depends on tax type and accounting rules; this calculator does not determine tax classification.
Is the result a mandatory client price?
No. It is a planning result from your inputs; final pricing depends on scope, market, contract, taxes and risk.
Should I use monthly or annual figures?
Keep all inputs on the same period so annual income is not mixed with monthly hours or expenses.