Business Budget Calculator
From total income and total expenses, compute the net surplus and the surplus ratio to check if the business budget balances.
Input Data
Results
At a glance:Business budget is the basic tool for merchants and the self-employed to see 'income minus expenses, how much is left and the surplus ratio'. net surplus = total income - total expenses; surplus ratio = net surplus / total income x 100%. Example: income 1m, expenses 820k → surplus 180k, ratio 18% (HK$18 of every HK$100 earned). Positive surplus can be reinvested/repaid/reserved; negative means overspending. A higher ratio means stronger resilience; set a target ratio and reverse-engineer the expense cap. WARNING: Simplest model — no fixed/variable split, no depreciation/tax, no AR/AP timing. For formal planning use full financial statements.
Formula
Net profit = total revenue − total costs (fixed + variable).
Profit margin = net profit / total revenue × 100%.
$$\text{Net} = \text{Income} - \text{Expenses}$$$$\text{Surplus \%} = \dfrac{\text{Net}}{\text{Income}} \times 100\%$$How to Use
- Enter the total income for the period.
- Enter the total expenses for the period.
- View the net surplus and surplus ratio.
FAQ
Which matters more, net surplus or surplus ratio?
Both. Net surplus is the absolute amount left; the surplus ratio is the relative efficiency per dollar of revenue, easier to compare across periods or sizes. A small shop may have a modest surplus but a high ratio — efficient and expandable.
What if the surplus ratio is negative?
It means expenses exceed income (a loss). Review the cost structure, cut variable costs where possible and raise income. Use the break-even calculator to find the sales needed to balance, then adjust pricing, cost or volume.
Can this replace formal financial statements?
No. It is the simplest income-expense snapshot — no depreciation, tax or AR/AP timing. Handy for daily monitoring and quick budgeting; for tax filing, financing or formal planning you need a full income statement, balance sheet and cash-flow statement, and should consult an accountant.
What period should I budget — month, quarter or year?
Depends on use. Annual budgets suit overall targets and financing; monthly/quarterly help catch deviations early. Common practice: set the annual target, then review actual vs budget monthly. For seasonal businesses (retail, F&B), budget monthly to reflect seasonal swings.
How does Hong Kong Profits Tax affect my surplus?
This tool shows pre-tax surplus. A Hong Kong company pays Profits Tax on assessable profits (currently 8.25% on the first HK$2m of assessable profits, 16.5% above, under the two-tier rates; unincorporated businesses differ). Tax further reduces distributable surplus, so reserve for tax when budgeting. Actual rates and concessions follow the Inland Revenue Department.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.