Business Formula Guides
Business math guides that explain formulas, worked examples, assumptions, result interpretation, and the calculators connected to each topic.
Profit Margin vs Markup: Formulas, Differences, and Conversion
Margin vs markup explained with both formulas, a worked conversion in each direction, and the pricing mistakes that come from mixing them up.
LTV:CAC Ratio Explained: Formula, Example, and Interpretation
How the LTV:CAC ratio is calculated, a full worked example, and what the ratio does and does not tell you about a customer relationship.
Inventory Planning Formulas: Safety Stock, Reorder Point, and EOQ
How safety stock, reorder point, EOQ, and carrying cost work together, with one worked scenario carried through all four formulas and a practical order of use.
Employee Turnover Cost: Formula, Components, and Example
The employee turnover cost formula explained in plain English: quick estimate vs. component build-up, the six cost drivers, and a complete worked example.
Inventory Carrying Cost Formula: Components and Example
The inventory carrying cost formula explained in plain English: the nine cost components, dollars vs. rate, and a complete worked example.
Customer Lifetime Value Formula: How to Calculate CLV
The CLV/LTV formula explained in plain terms: the simple revenue model, the gross-margin adjustment, and the churn-based shortcut for subscription businesses, each with a worked example.