About Biz Sandbox

Biz Sandbox offers free calculators that help you test the numbers of a small business before you spend money on it.

What the calculators do

You enter your expected sales and costs. The calculator shows monthly net profit, the break-even point, and how long it takes to earn back your startup cost, in a pessimistic, a normal, and an optimistic case.

How the numbers are calculated

• Revenue = customers (or loads) per day × average sale × days open per month.
• Variable costs = cost of goods, card processing fees, and waste, each as a percentage of revenue.
• Labor = staff wages plus payroll taxes and workers’ comp.
• Fixed costs = rent, utilities, insurance and permits, other costs, and the owner’s pay.
• Depreciation = equipment value ÷ equipment life in months.
• Net profit = revenue − variable costs − labor − fixed costs − depreciation.
• Break-even = the customers (or loads) per day at which net profit is zero.
• Payback = startup cost ÷ (net profit + depreciation), because depreciation is not cash leaving the business.

The pessimistic case uses 70% of your normal volume and ingredient or material costs 15% higher. The optimistic case uses 120% of volume and costs 5% lower.

Limits you should know about

• The starting values on each calculator are examples, not research. Replace them with quotes and numbers from your own area.
• Enter prices before sales tax. Income taxes, loan payments, and seasonality beyond the three cases are not modeled.
• Results are estimates for planning. They are not financial, tax, or legal advice and do not guarantee any outcome. Consider talking to a local accountant or small business advisor before committing money.

Feedback

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