Running a business questions, answered

Business Acquisition Calculator NZ 2026/27

How do I know if a business is worth buying?

It has to service its debt, pay you properly, and return your cash in a reasonable time. On the worked example, a $1,000,000.00 purchase of a business earning $411,500.00 of SDE leaves $135,204.25 of annual cash flow after $156,295.75 of debt service and a $120,000.00 owner wage. Debt service coverage is 1.87, cash-on-cash return is 37.04% on the $365,000.00 actually invested, and payback is 2.70 years. All three need to work, not just one.

How much cash do I need to buy a business?

More than the deposit. On the worked example the deposit is $250,000.00, but the business also needs $80,000.00 of working capital from settlement day and the acquisition costs $35,000.00 in legal, accounting and due diligence fees. Total cash required is $365,000.00, which is 46% more than the deposit alone. Buyers who budget only for the deposit start their ownership underfunded, in the period when they can least afford it.

What DSCR do I need to buy a business?

Most lenders want at least 1.25 and prefer 1.5 or better on an acquisition, because the buyer is unproven in that business. On the worked example the ratio is 1.87, meaning earnings after the owner's wage cover the debt service nearly twice over. Below 1.25 the deal is usually not fundable at all, and between 1.25 and 1.5 it is fundable but fragile: a single bad quarter puts you in breach.

What is the maximum I should pay for this business?

On the worked example, $1,369,032.37, being the price at which the earnings still cover debt service at a 1.25 coverage ratio with the same deposit. That is a ceiling rather than a target: paying it takes coverage from 1.87 down to the minimum and removes all margin for error. Its real value is as a walk-away number decided before negotiation, because deciding it during negotiation is how buyers talk themselves into a price.

Should I use vendor finance when buying a business?

Usually yes, for two reasons beyond the cheaper rate. It reduces the bank debt, which improves the coverage ratio the bank is testing. More importantly it keeps the vendor financially interested in the handover: a seller owed $150,000.00 over four years has a genuine reason to make the transition work. The trade-off is that vendor finance terms are short, so the repayment is heavy in the early years when you are least established.

What if the deal only works if I take no wage?

Then you are not buying a business, you are buying a job, and paying for the privilege. The test is simple: if annual cash flow is negative with a proper wage but positive without one, the earnings are only sufficient because you are working below market. That may still be a reasonable decision if you want the role, but it should be made deliberately, and it means the return figures on this page describe your labour rather than your capital.

How long should it take to get my money back?

On the worked example, 2.70 years to recover the $365,000.00 invested from $135,204.25 of annual cash flow. Under three years is strong for a small business acquisition, three to five is normal, and beyond five deserves scrutiny about why the price is so high relative to what the business produces. Note this is a simple payback on cash flow and ignores any value you might realise on a later sale.

What revenue does the business need to keep to service the deal?

On the worked example, $1,242,155.85, which is 67.14% of the current $1,850,000.00. Below that, earnings no longer cover both the debt service and your wage. That headroom of nearly a third is the real measure of how much risk the deal carries: it means the business could lose a third of its revenue before the structure fails. If the break-even revenue is close to current revenue, the deal has no tolerance for the customer losses that commonly follow a change of ownership.

Business Cash Buffer Calculator NZ 2026/27

How much cash should a small business keep in reserve?

Between three and six months of fixed outgoings for most businesses, and the position within that range depends on your own risk profile rather than a general rule. On the worked example the target is 5.5 months, built from a base of 3.0 plus 1.0 for medium revenue volatility, 0.5 for carrying staff, 0.5 for seasonality and 0.5 for debtors paying beyond 45 days. Against a monthly outflow of $60,200.00 that is $331,100.00.

What should a business cash buffer cover?

Everything that leaves the business whether or not revenue arrives: fixed operating costs, payroll and debt repayments. On the worked example that is $18,000.00 of fixed costs, $34,000.00 of payroll and $8,200.00 of debt, totalling $60,200.00 a month. Variable costs are deliberately excluded, because they fall away when the work does. Payroll is the line that makes buffers large, and it is also the one with the least flexibility in the short term.

Is a business cash buffer the same as a personal emergency fund?

No, and holding one does not substitute for the other. A personal emergency fund covers your household if your income stops. A business buffer covers the company's committed outgoings if revenue stops, and those outgoings include other people's wages. They also sit in different entities: money in the company is not yours to take freely, and drawing it out to cover a personal shortfall creates a shareholder current account and possible tax consequences. Size and hold them separately.

Why do businesses with staff need a bigger buffer?

Because payroll is the least flexible cost and the most consequential to get wrong. A supplier will usually accept a delayed payment; an employee cannot be asked to wait, and reducing hours or making a role redundant carries notice periods and process obligations that take weeks. On the worked example payroll is $34,000.00 of the $60,200.00 monthly outflow, which is 56.5%, and it is the main reason the target reaches 5.5 months rather than 3.0.

How long does it take to build a business cash buffer?

Longer than most owners expect. On the worked example the shortfall is $236,100.00 and saving $4,000.00 a month closes it in 59.0 months, which is nearly five years. That is why the staged milestones matter more than the final target: reaching one month of outflow, $60,200.00, is already useful, and three months at $180,600.00 takes 21.4 months from the current position. Most of the protection arrives well before the target does.

Does an overdraft count as a cash buffer?

Only partly, and it should not be your whole answer. An undrawn facility behaves like a buffer until the bank reviews it, and facilities are commonly reduced or withdrawn when trading deteriorates, which is precisely when you need it. Treat a facility as a second line of defence behind actual cash rather than as a substitute for it. If you do count it, run this page twice, once with it and once without, and understand the gap between the two as a risk you are carrying.

Should I hold tax money in the buffer?

No. GST collected and PAYE deducted are not the business's money, they are amounts held on behalf of Inland Revenue and due on a known date. Counting them as a buffer produces a comfortable-looking bank balance that disappears on the 20th, and using them to cover a shortfall is one of the most common routes into tax debt and use of money interest. Hold them separately, ideally in a different account, and exclude them from the figure you enter here.

Where should a business hold its cash buffer?

Somewhere accessible within a day or two and separate from the trading account, so it is not spent by accident. An on-call or short-term deposit account is the usual answer. The return matters far less than the accessibility: a buffer earning slightly more but locked for ninety days is not a buffer. Resist the temptation to invest it, because the point of the money is to be available at exactly the moment when most other assets are hard to sell.

Business Health Check Calculator NZ 2026/27

What is a good overall business health score?

Above 75 percent is strong, 50 to 75 percent is workable with identifiable weaknesses, and below 50 percent means at least one dimension needs attention now. The worked example scores 63 percent, which is a profitable business with a cash collection problem: margins and liquidity are fine, but debtor days of 48.5 and a cash conversion cycle of 64.3 days are both red. The score is less useful than knowing which dimension produced it.

What is the cash conversion cycle and why does it matter?

It is the number of days between paying for something and being paid for it, calculated as days sales outstanding plus days inventory outstanding less days payable outstanding. On the worked example it is 64.3 days: 48.5 collecting from customers plus 59.2 holding stock less 43.4 taking to pay suppliers. Every one of those 64 days has to be funded by the business, which is why a growing, profitable company can still run out of money.

What is a healthy current ratio for a New Zealand business?

Generally 1.5 or better, meaning current assets are at least one and a half times current liabilities. Below 1.0 the business cannot cover its short-term obligations from short-term assets. The worked example is 1.68, which is comfortable. The quick ratio matters more for a business holding stock, because it strips inventory out: here that takes 1.68 down to 1.10, still acceptable but a much thinner margin once you exclude goods that have not sold yet.

How much debt is too much for a small business?

Debt to equity above 2.0 is usually a concern and above 1.0 deserves attention, though asset-heavy businesses reasonably carry more. Interest cover is the better test of whether debt is affordable: operating profit divided by interest, with 3.0 or better comfortable and below 1.5 serious. The worked example carries debt to equity of 1.19, which is amber, but covers its interest 4.87 times, which is green. Those two readings together say the debt is large but currently affordable.

What are good debtor days for a New Zealand business?

Thirty days or fewer is healthy on standard 20th of the month following terms, 30 to 45 is workable, and beyond 45 means invoices are effectively being funded by the business. The worked example is 48.5 days, which on revenue of $1,850,000.00 means around $246,000.00 is sitting in debtors at any time. Pulling that back to 35 days would release roughly $68,000 of cash without selling anything extra.

Can a profitable business still be in trouble?

Routinely, and it is the most common way a good business fails. Profit is an accounting measure recognised when an invoice is raised; cash arrives when it is paid. The worked example earns $142,000.00 of net profit on $1,850,000.00 of revenue, a healthy 7.68 percent, while carrying a 64.3 day cash conversion cycle. Growth makes that worse rather than better, because each additional sale has to be funded for 64 days before it turns into money.

Which industry band should I choose?

Choose by cost structure rather than by what you call yourself. Services businesses carry high gross margins because labour is often below the gross profit line, so a 60 percent gross margin is unremarkable. Retail and wholesale run on low margins and high turnover, where 25 percent can be perfectly healthy. Trades sit between the two and depend heavily on whether materials are marked up. Picking the wrong band does not change any ratio, it only changes whether the traffic light is telling you anything useful.

How often should I run a business health check?

Annually against the finished accounts as a minimum, and quarterly on management figures if any dimension is amber or red. The value is in the trend rather than the level: a current ratio of 1.3 that was 1.8 last year is a more urgent signal than a steady 1.2. Keep the inputs and the band consistent between runs, otherwise you are measuring your own assumptions rather than the business.

Business Loan Structure Calculator NZ 2026/27

Which business loan structure is cheapest?

A table loan, almost always. On the worked example of $400,000.00 at 8.5% over 10 years, table principal and interest costs $4,959.43 a month, $595,131.31 in total and $195,131.31 of interest, with nothing owing at the end. Every other structure costs more interest because principal is repaid more slowly, and interest is charged on whatever principal remains. There is no structure that is both cheaper and easier on cash: that trade-off is the whole point.

Is revolving credit cheaper than a table loan?

No, although it looks cheaper if you only read the total paid. On the worked example, revolving credit run as interest only costs $2,833.33 a month and $340,000.00 over ten years, against $595,131.31 for the table loan. But at the end of the ten years the revolving facility still owes the full $400,000.00, while the table loan owes nothing. Counting that, revolving credit has cost $740,000.00 against the table loan's $595,131.31: it is $144,868.69 more expensive, not $255,131.31 cheaper.

What does interest only really cost a business?

On the worked example, three years of interest only costs $2,833.33 a month during the period, then the repayment jumps to $6,334.59 for the remaining seven years because the same $400,000.00 now has to be repaid over less time. Total interest rises from $195,131.31 to $234,105.91, so the three years of relief cost $38,974.60. That can be entirely worthwhile if the business needs the cash during a specific period, but the size of the jump at the end of the period is what catches owners out.

What is the difference between total paid and total cost on a loan?

Total paid is the cash that left the business. Total cost adds whatever principal is still outstanding at the end, because that debt is real and still has to be repaid. Any structure that does not amortise will always show a low total paid, which is why comparing on that basis is misleading. On the worked example the ranking reverses completely: revolving credit has the lowest total paid at $340,000.00 and the highest total cost at $740,000.00.

Which structure has the lowest cash cost in year one?

Interest only and revolving credit tie on the worked example, both costing $34,000.00 in year one against $59,513.13 for the table loan. That is $25,513.13 of cash freed in the first year. They differ afterwards: revolving credit stays at $34,000.00 indefinitely and never repays anything, while the interest only structure jumps to $76,015.08 a year once the three year period ends. Cash relief now is always borrowed from later.

Is interest on a business loan tax deductible in New Zealand?

Interest on borrowing used for business purposes is generally deductible, while the principal portion of a repayment never is. That does not change which structure is cheapest, it only changes the after-tax size of the difference, which is why this calculator reports interest rather than attempting to net it down at an assumed tax rate. Where a facility is used for both business and private purposes the deduction has to be apportioned, and drawing personal spending from a revolving business facility is the most common way that gets messy.

When does a split loan structure make sense?

When part of the borrowing is genuinely permanent and part genuinely fluctuates. On the worked example a 50/50 split costs $3,896.38 a month, repays half the principal over the term and leaves $200,000.00 owing, for a total cost of $667,565.65. It sits between the table loan and the revolving facility on both measures, which is what a compromise looks like. It is a poor choice if the revolving portion is really just permanent debt you would rather not amortise.

Should I choose the cheapest structure or the one with the lowest repayment?

Choose the cheapest structure your business can comfortably service, which is not the same as either extreme. A structure the business cannot service will fail regardless of how efficient it looks on paper, and a structure that never repays principal leaves the debt permanently on the balance sheet where it constrains every future decision. The useful question is what the freed cash is actually for: funding growth that earns more than 8.5% justifies the extra interest, while funding ordinary running costs usually signals a problem the loan structure will not fix.

Business Stress Test Calculator NZ 2026/27

How long would my business survive if sales dropped 30 percent?

On the worked example, 7.3 months. Revenue falls from $154,000.00 to $107,800.00 a month, and at a 40% gross margin that leaves $43,120.00 of contribution against $48,000.00 of fixed costs and $8,200.00 of debt repayments. The business burns $13,080.00 a month and $95,000.00 of cash lasts 7.3 months. That is the single most useful number on this page, because a 30 percent fall is the scale of downturn most businesses eventually meet.

What is my revenue floor?

The revenue below which the business loses money every month. On the worked example it is $140,500.00 a month, calculated as fixed costs of $48,000.00 plus debt repayments of $8,200.00, divided by the 40% gross margin. Against normal revenue of $154,000.00, that is a drop tolerance of only 8.77%. A business that starts losing money after a nine percent fall in sales has very little room, even though it looks comfortably profitable today.

Why does a small fall in sales cause such a large fall in profit?

Because fixed costs do not move. On the worked example a 10% fall in revenue is $15,400.00, but only $9,240.00 of costs disappear with it, so $6,160.00 comes straight off the bottom line. The business goes from making $5,400.00 a month to losing $760.00. This is operating leverage: the higher your fixed costs relative to your margin, the more violently profit responds to a change in sales, in both directions.

How much cash should a business hold to survive a downturn?

Enough to fund the burn at a realistic downturn for as long as it plausibly lasts. On the worked example, surviving twelve months at a 30% fall requires $156,960.00 of cash, and the business holds $95,000.00, so it is $61,960.00 short. Whether twelve months is the right target depends on the industry: a business with long contracts and slow-moving demand needs more than one that can rebuild a pipeline in a quarter.

Does cutting costs save a business in a downturn?

It helps, and it helps less than owners expect because of timing. On the worked example, cutting 25% of fixed costs saves $12,000.00 a month and pulls the revenue floor from $140,500.00 down to $110,500.00, which converts a 30% fall from fatal into survivable. But the cuts take two months to take effect, so the business burns cash at the full rate first. Cuts decided in month one and effective in month three are worth far more than the same cuts decided in month four.

Should I include loan repayments in a business stress test?

Yes, and separately from operating costs, because they behave differently. Rent can be renegotiated, staff hours can be reduced, marketing can be paused. A term loan repayment continues at the contracted amount regardless of trading, and missing one has consequences that a late supplier payment does not. On the worked example $8,200.00 a month of repayments accounts for 14.6% of the revenue floor, which is a material part of why the drop tolerance is so thin.

What is the difference between a stress test and a cash flow forecast?

A forecast asks what you expect to happen. A stress test asks what happens if you are wrong, and by design ignores your expectations. That is why it uses blunt percentage falls rather than a modelled scenario: the point is not to predict the downturn but to find out how much of one the business can absorb before the answer stops being survivable. Run both, and act on whichever gives the worse answer.

How often should a business run a stress test?

At least annually, and again whenever anything structural changes: taking on debt, signing a lease, hiring, or losing a customer worth more than about ten percent of revenue. Each of those moves the revenue floor, usually upward. The test takes a few minutes and the useful output is a single sentence you should be able to say without checking, namely how many months you would last if a third of your revenue disappeared.

Business Surplus Cash Calculator NZ 2026/27

What tax does a company pay on interest?

The company tax rate of 28%. Resident withholding tax may be deducted at source at 28% where the company has supplied its IRD number, and it is credited against the company's final liability. Interest is ordinary income for a company, so there is no separate or concessional rate for it.

Can a company use a PIE to reduce tax?

No. Inland Revenue states that a company resident in New Zealand is a zero-rated investor and should use a PIR of 0%, and that all income or loss from a multi-rate PIE must be included in the company tax return. The income is therefore taxed at 28% in the company's return, so a PIE offers a company no rate advantage at all.

Why do PIEs help individuals but not companies?

Because the PIE advantage is a rate advantage, and it only exists where the investor's own rate is above the top PIR of 28%. On a 4.00% return an individual on a 39% marginal rate nets 2.44% from bank interest and 2.88% through a PIE, a gain of 0.44 points. A company nets 2.88% either way, so the gain is 0.00.

How much cash should a business keep on hand?

Enough to cover operating costs through a bad period, which depends on how predictable your revenue is. On the worked example, three months of $45,000.00 monthly costs is $135,000.00, leaving $65,000.00 of the $200,000.00 balance genuinely surplus. Businesses with lumpy or seasonal revenue need more, not less.

How much is idle cash actually costing?

On the worked example, $200,000.00 sitting in a transaction account at 0.10% earns $144.00 a year after tax. The same balance in a 12-month term deposit at 3.60% earns $5,184.00. The difference of $5,040.00 a year is the cost of leaving it where it lands.

Should surplus cash be distributed to shareholders instead?

That is a genuine alternative rather than an afterthought. Retaining cash in a company defers the shareholder's tax rather than avoiding it, since a later dividend carries imputation credits at the 28% company rate and a shareholder on a higher marginal rate tops up the difference. Whether to retain or distribute is a question for your accountant, since it turns on the shareholder's position rather than the company's.

Is a term deposit safe for business cash?

The main risk is not credit, it is access. Breaking a term deposit early typically forfeits most of the additional interest, which can leave you worse off than an on-call account. Match the term to a period you are genuinely confident about, and split larger amounts across several maturity dates so that not all of it is locked at once.

Can a company invest surplus cash in shares or funds?

It can, but the question changes from treasury to investment. Money that may be needed for the business does not belong in an asset that can fall 30% in a year, and returns above cash rates are compensation for exactly that risk. Where a company holds genuinely long-term capital, the foreign investment fund rules may also apply to overseas holdings.

Employee Turnover Cost Calculator NZ 2026/27

How much does employee turnover cost a business?

On the worked example, $157,245.30 a year. A team of 24 with 22% turnover loses 5.28 people annually, and each departure costs $29,781.31: $14,189.00 of recruitment, $7,892.31 of lost output while the replacement comes up to speed, $4,500.00 of knowledge and handover, and $3,200.00 of accrued leave paid out. That is 8.62% of the $1,824,000.00 payroll, spent every year to stand still.

What does one employee leaving cost?

On the worked example, $29,781.31 for someone on $76,000.00, which is 39% of their annual salary. Recruitment at $14,189.00 is the visible half. The ramp-up loss of $7,892.31 comes from twelve weeks at an average 55% productivity, meaning the business pays full salary for 45% less output. Knowledge and handover add $4,500.00 and the accrued leave payout $3,200.00.

What is a normal employee turnover rate in New Zealand?

It varies enormously by sector, so a single benchmark is not much use. Hospitality and retail routinely run well above 30%, professional services and trades considerably lower. The more useful comparison is against your own previous years and against what your particular roles cost to replace. A 22% rate in a business where each departure costs $29,781.31 deserves far more attention than a 35% rate where replacements are quick and cheap.

What would reducing turnover by five percent save?

On the worked example, $35,737.57 a year. Going from 22% to 17% turnover on a team of 24 means 1.2 fewer departures, each costing $29,781.31. A ten point reduction to 12% saves $71,475.14. Those are the figures worth putting next to the cost of whatever retention measure you are considering, because most are considerably cheaper than $35,000 a year.

Is turnover cost the same as the cost of a bad hire?

No, and they should be measured separately. Turnover cost is what it costs when someone competent leaves and is replaced: recruitment, ramp-up, lost knowledge, leave payout. The cost of a bad hire adds the damage done while they were there, including customer harm, rework and the drag on colleagues, and it is typically several times larger. A business with high turnover of good people has a retention problem; one with repeated bad hires has a selection problem.

Why is ramp-up included in turnover cost?

Because the replacement is paid in full from their first day and produces in full considerably later, and that gap is a real cost caused by the departure. On the worked example twelve weeks at an average 55% productivity costs $7,892.31 on a $76,000.00 salary. It is the second largest component and the one most often left out, which is why quoted turnover costs are usually understated.

How do I reduce employee turnover?

Find out why people are actually leaving before spending anything. Exit conversations conducted by someone other than the departing person's manager give better information than a form. Common and fixable causes are a manager rather than the job, pay that has drifted below market for existing staff while new hires are brought in at current rates, and no visible path to anything else. Each has a different remedy, and spending on the wrong one is how retention budgets get wasted.

Should I count turnover cost as a percentage of payroll?

It is a useful way to make the number comparable year to year and across businesses of different sizes. On the worked example 8.62% of payroll goes on replacing people. Presented that way it sits alongside other cost ratios and is harder to dismiss than an absolute figure, particularly when a business is scrutinising much smaller line items elsewhere.

FX Fee Tier Break-Even Calculator NZ 2026/27

Is a paid membership with a lower FX rate worth it?

It depends entirely on how much you convert. On the worked example, converting $24,000.00 a year costs $360.00 on a free tier charging 1.50%, $194.00 on a $50.00 tier charging 0.60%, and $246.00 on a $150.00 tier charging 0.40%. The middle tier wins by $166.00 against the free one. At a much lower volume the free tier would win, and at a much higher volume the most expensive membership would.

How do I calculate the break-even volume between two tiers?

Divide the difference in annual fees by the difference in FX rates. On the worked example, moving from a free tier at 1.50% to a $50.00 tier at 0.60% is a $50.00 fee difference against a 0.90 percentage point rate difference, so the break-even is $50.00 divided by 0.009, which is $5,555.56 of annual conversions. Below that the free tier is cheaper. Above it the paid one is.

Which tier is cheapest at my volume?

On the worked example's three tiers, the free tier wins below $5,555.56 of annual conversions, the middle tier wins between $5,555.56 and $50,000.00, and the top tier wins above $50,000.00. Those bands are the useful output, because they tell you not only what to choose now but at what point to change. Enter your own tier figures and the calculator produces the equivalent bands.

Why does the most expensive membership not always win at high volume?

It does eventually, but the crossover can be far higher than people assume. On the worked example the top tier costs $100.00 more a year than the middle one and saves only 0.20 percentage points on conversions, so it needs $50,000.00 of annual volume before the saving covers the extra fee. An investor converting $24,000.00 a year who upgrades to the top tier pays $52.00 more than they need to.

Should I include the membership fee if I would pay it anyway?

Only if the membership genuinely delivers something else you value and would pay for separately, such as access to funds not available on the free tier. If the lower FX rate is the only reason you are considering it, the full fee belongs in this calculation. Where a tier unlocks a cheaper fund as well, that saving should be added to the comparison, and our fixed fee versus percentage fee calculator handles that side.

What if my conversion volume varies a lot year to year?

Use a realistic average rather than a good year, and note where that average sits relative to the break-even. If your volume straddles a break-even point, the cheaper membership is usually the better choice, because the downside of being on a cheap tier in a heavy year is small while the downside of paying for a tier you did not use is the whole fee. Most platforms allow a change of tier, so this is rarely a permanent decision.

Does this apply to anything other than FX fees?

The arithmetic is identical for any fixed fee bought against a variable rate: a subscription that reduces brokerage, an annual platform fee that reduces a management fee, or a package that lowers a transaction charge. Enter the fixed annual cost and the variable rate for each option and the break-even logic is the same. The only requirement is that the variable cost is a percentage of something you can estimate annually.

Is the FX fee the only thing that differs between tiers?

Usually not, and that matters. Paid tiers commonly unlock lower fund management fees, additional funds, or automation features, any of which can change the answer substantially. This calculator isolates the FX comparison deliberately, so you can see that component clearly. If a tier also reduces your fund fees, calculate that saving separately and add it before deciding.

Margin of Safety Calculator NZ 2026/27

What is the margin of safety?

The margin of safety is how far sales can fall before the business stops making a profit and merely breaks even. It is calculated as current sales less break-even sales, and is usually expressed as a percentage of current sales. On the default figures, sales of $850,000.00 against break-even sales of $647,619.05 give a margin of safety of $202,380.95, which is 23.81% of sales. Sales could fall by almost a quarter before the business began losing money.

How do you calculate break-even sales?

Fixed costs divided by the contribution margin ratio. The contribution margin ratio is the share of each sales dollar left after variable costs, so with variable costs at 58% of sales the ratio is 42%. Dividing $272,000.00 of fixed costs by 0.42 gives break-even sales of $647,619.05. Note that you divide by the ratio, not by the margin per unit, when working in revenue rather than units.

What is a good margin of safety percentage?

There is no universal figure, and it depends heavily on how volatile your revenue is. A business with contracted recurring revenue can operate comfortably on a thin margin of safety, because sales are unlikely to move much. A business dependent on discretionary consumer spending, construction activity or a small number of large clients needs a much wider one, because a single lost client or a slow quarter can move revenue by twenty percent. Judge it against your own revenue volatility rather than a benchmark.

Why does profit fall so much faster than sales?

Because fixed costs do not fall with sales. Only the contribution margin portion of lost revenue reduces profit, but the entire fixed cost base remains. On the defaults, a 10% fall in sales removes $85,000.00 of revenue and $35,700.00 of contribution, cutting profit from $85,000.00 to $49,300.00, which is a 42% fall in profit from a 10% fall in sales. That amplification is operating leverage, and the higher your fixed costs relative to contribution, the more violent it is.

What is the difference between margin of safety and break-even?

Break-even is a level of sales: the point at which contribution exactly covers fixed costs and profit is zero. Margin of safety is the distance between that point and where you actually are. Break-even alone tells you what you must achieve; margin of safety tells you how much room for error you have. The second is the more useful number for risk, because $647,619.05 of break-even sales means something quite different to a business selling $700,000 than to one selling $2,000,000.

Should variable costs include labour?

It depends on whether that labour genuinely varies with sales. Wages of permanent salaried staff are fixed: you pay them whether or not the work comes in, at least in the short term. Subcontractors engaged per job, casual hours rostered to demand, and piece rates are variable. Many New Zealand small businesses treat all wages as variable and materially understate their break-even point as a result, because in a downturn those wages keep being paid while the revenue stops.

Can margin of safety be negative?

Yes, and it means current sales are below break-even, so the business is losing money at its present volume. The negative figure tells you exactly how much additional revenue is needed to reach break-even, which is a more actionable framing than a loss figure on its own. It also shows how much fixed cost would need to be removed instead, since either lever closes the same gap.

How does margin of safety relate to operating leverage?

They are two views of the same structure. Operating leverage measures how much profit amplifies a change in sales, and it is highest when fixed costs are large relative to contribution. Margin of safety measures the distance to break-even, and it is smallest under exactly those conditions. A business with high fixed costs has both high operating leverage and a thin margin of safety, which is excellent when revenue is growing and dangerous when it is not.

Membership Tier Break-Even Calculator NZ 2026/27

Is a paid investment membership tier worth it?

It depends entirely on the balance, because the membership fee is fixed while the savings it unlocks scale with the money. On the worked example a $50 tier costs $147.50 a year in total against $177.50 on the free tier, so it saves $30.00. The same tier at a $10,000.00 balance would cost more than the free one, and the crossover is at $23,000.00.

At what balance does a paid tier start to pay?

On the worked example, an average balance of $23,000.00 for the middle tier and $313,333.33 before the top tier overtakes it. Those two figures are what the decision turns on. The first is reached by many people quickly and the second by very few, which is why the middle tier is cheapest across most of the range.

Why does the most expensive tier not win at a high balance?

It does eventually, but the gap it has to close is larger than it looks. On the worked example the top tier saves 0.03% of the balance a year over the middle tier while costing $100 more in membership, so it needs $313,333.33 of average balance to break even. Below that the extra membership fee outweighs the fee reduction.

Does the FX rate a tier unlocks matter?

Only to the extent you convert currency. On the worked example converting $3,000.00 a year saves $27.00 by moving from a 1.50% rate to a 0.60% rate, which is most of the middle tier's advantage at a small balance. Someone who never buys foreign shares gets none of that, and this is the input people most often overstate when justifying an upgrade.

Should I use my starting balance or my average balance?

The average, because fund fees are charged on the balance throughout the year rather than on what it was in January. On the worked example a $50,000.00 balance with $500.00 a month going in averages $53,000.00 across the year, and using the starting figure would understate every tier's fund fee. The calculator does this for you.

How much does picking the wrong tier cost?

Less than most people fear and more than nothing. On the worked example the spread between the cheapest and dearest tier is $78.10 a year at this balance. It grows with the portfolio: at a $500,000.00 average balance the free tier costs $1,295.00 against $762.00 on the top tier, a difference of $533.00 a year that compounds if it is never revisited.

Does this compare specific providers?

No. Every fee on this page is something you type in, and the defaults are illustrative figures rather than any real product. It compares fee structures so you can put your own provider's numbers in and get an answer, and it names, ranks and recommends nobody. Fee schedules change, so take the current figures from the provider's own fee page.

How often should I check which tier I am on?

Whenever the balance changes materially, and at least once a year. The right tier moves as the portfolio grows because the fixed membership fee stays put while the percentage savings scale with the money. A tier chosen when you started investing is very unlikely to still be the cheapest several years later, and nothing prompts you to look.

Personal Runway Calculator NZ 2026/27

What is personal runway?

Personal runway is how many months you can meet your own living costs before the business has to start paying you properly. It is the personal equivalent of a company's cash runway, and for anyone starting out it is usually the binding constraint on the whole venture. On the default figures, $61,000.00 of available capital against a $3,000.00 monthly shortfall gives 20.3 months of runway.

How many months of personal runway should I have before starting a business?

There is no correct figure, and anyone quoting one as a rule is guessing. What matters is the relationship between your runway and how long your particular business realistically takes to pay you. A consulting business with clients already lined up may be paying its owner within two months. A business that must build product, obtain certification or develop a customer base from nothing may take a year or more. Work out the second number first, then judge whether your runway covers it with room to be wrong.

Should I include KiwiSaver in my available savings?

No. KiwiSaver cannot generally be withdrawn to fund a business or to live on. The main early withdrawal routes are a first home purchase, significant financial hardship, serious illness and permanent emigration, and starting a business is not among them. Counting it as runway produces a number you cannot actually spend. Our KiwiSaver hardship withdrawal guidance covers the narrow circumstances where access is possible.

Is redundancy pay taxed in New Zealand?

Yes. A redundancy payment is treated as an extra pay and taxed at your marginal rate, so the amount landing in your account is less than the headline figure in your settlement. Enter the net amount you actually received rather than the gross, otherwise your runway will be overstated from the first month. Our redundancy pay calculator works through the tax on a lump sum.

How much difference does cutting personal spending make?

More than most people expect, because the saving comes off the shortfall rather than off total spending. On the defaults, cutting personal costs by 10% saves $560.00 a month but reduces the monthly shortfall from $3,000.00 to $2,440.00, extending runway from 20.3 months to 25.0 months. A 20% cut takes it to 32.4 months. A modest reduction buys a disproportionate amount of time, which is why it is usually the first lever to pull.

Should I take drawings from the business early on?

Cautiously, and only from cash the business genuinely does not need. Early drawings are frequently the money that would have funded the next job's materials or the tax bill, and taking them can shorten the business's runway faster than it lengthens yours. It is also worth remembering that money drawn out is not free: shareholder drawings and salary have tax consequences that depend on your structure, so take advice on how to take money out before you take it.

What is the minimum I need to draw to make my savings last?

Work backwards from the date you need to reach. Take your monthly costs, subtract other household income, and subtract the capital you can afford to consume each month to reach that date. On the defaults, stretching $61,000.00 across 24 months allows $2,541.67 a month of capital, so with $1,800.00 of partner income the business needs to pay you $1,258.33 a month. That is a much more useful target for the business than a vague ambition to be profitable.

Does this replace an emergency fund?

No, and conflating the two is a common and expensive error. Runway is money you are deliberately spending down to a planned end date. An emergency fund is money held back for the car breaking down, a health problem or a client failing to pay. If your runway calculation consumes every dollar you have, you have no emergency fund, and the first unexpected cost becomes a crisis rather than an inconvenience. Set the emergency fund aside first, then calculate runway on what is left.

Sole Agency vs General Listing Calculator NZ

What is the difference between a sole agency and a general listing in New Zealand?

A sole agency gives one agency the exclusive right to market and sell your property for a fixed term. A general agency, often called a general listing or multiple representation, lets more than one agency market the property at the same time, and you sign a separate agreement with each one. Under the Real Estate Authority standard clauses, a residential sole agency runs for 90 days if no end date is written in, while a general agency continues until either party gives seven days written notice.

Can I be charged two commissions on a general listing?

Yes, that is the real risk. The Real Estate Authority is explicit that if you sign more than one agency agreement you may have to pay all agents a commission regardless of which one arranges the sale. The dispute usually turns on who introduced the buyer, because two salespeople can both have shown the same buyer through. Using the REA approved standard clauses reduces the chance of a double claim but does not remove it, so on a $770,000 sale at a tiered 3.95% and 2% structure the extra exposure is a further $24,437.50 including GST.

How long does a sole agency agreement last in New Zealand?

The term is whatever the agreement says. Under the REA standard residential clauses, if no end date is filled in the sole agency runs for 90 days from the commencement date. Terms of 60 to 90 days are common. Where a residential sole agency is written for longer than 90 days, section 130 related protections and the standard clauses let either party cancel by written notice at any time after the first 90 days.

Can I cancel a sole agency agreement after I have signed it?

Section 130 of the Real Estate Agents Act 2008 gives you a short statutory cooling-off right. A client who is party to a sole agency agreement may cancel it by written notice by 5pm on the first working day after the day a copy of the agreement is given to them. Notice may be given by email. That right applies despite anything to the contrary in the agreement. After that window closes you are into the agreed term, and if the agent has already done work that results in a sale you can still owe commission.

What is the continuing commission or tail clause?

It is the clause that keeps an agency entitled to commission after the agreement has ended. Under the REA standard residential clauses, commission remains payable if within six months of the expiry, cancellation or termination of the agency you sell privately to a buyer the agency introduced, or where the sale comes about through the agency's efforts. For rural agency agreements the standard stand-down period is twelve months. When an agreement ends the agency must give you a list of the people it introduced to the property, and that list is the practical record of who the tail applies to.

Does a general listing sell a house faster or for more money?

There is no reliable New Zealand evidence that it does, and there are structural reasons to expect the opposite. An agency that knows it might do all the work and earn nothing has less reason to spend its own money and time on your property, and buyers who see the same house listed by three agencies can read it as a sign of a stale or difficult listing. The REINZ median days to sell nationally was 48 days in June 2026, so a 90 day sole agency term already covers a typical marketing campaign with room to spare.

Do I pay for marketing twice on a general listing?

Usually yes, at least in part. Marketing and advertising are charged separately from commission by every agency, and typically range from about $1,000 to $10,000 or more depending on the campaign. Each agency on a general listing will normally want its own photography, signage, portal listings and print, and each will invoice you for it whether or not the property sells. That duplicated marketing is the certain cost of a general listing, as opposed to the double commission which is the risk.

Should I get a lawyer to check the agency agreement before I sign?

Yes, and the agent is required to tell you so. Rule 9.7 of the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 requires a licensee, before you sign an agency agreement, to recommend that you seek legal advice, make sure you know you can seek technical advice, and allow you a reasonable opportunity to get it. Section 127 of the Real Estate Agents Act 2008 also requires the agent to give you the approved guide before you sign a residential agency agreement, and section 126 means that without a written agency agreement the agent has no entitlement to commission at all.

Tax Reserve Per Invoice Calculator NZ 2026/27

What percentage should a contractor set aside from every invoice for tax in New Zealand?

Most sole traders and contractors should reserve somewhere between 25% and 40% of each invoice, covering income tax at their average rate, the 1.75% ACC earner's levy, 12% student loan repayments if applicable, and any voluntary KiwiSaver contribution. The exact figure depends on your expected annual income, since New Zealand's income tax brackets are progressive.

Does this reserve percentage include GST?

No. This calculator works on the GST-exclusive amount of your invoice. If you are GST-registered, GST is a separate 15% amount you collect on behalf of Inland Revenue and pass on in your GST return. It is never your money to begin with, so it should be excluded before you calculate your income tax reserve.

Why does the reserve percentage change with my income level rather than staying fixed?

New Zealand uses a progressive income tax system with five brackets from 10.5% to 39%. Someone earning $50,000 a year has a lower average tax rate than someone earning $150,000, so the correct reserve percentage rises as your expected annual income rises. A flat rule of thumb such as set aside 30% is only accurate for one particular income level.

Do self-employed people have to contribute to KiwiSaver?

No. Unless you also have PAYE employment, KiwiSaver contributions for the self-employed are entirely voluntary. There is no employer to match them and nothing is deducted automatically. Many self-employed people still choose to contribute so they qualify for the government contribution of 25 cents for every dollar they put in, up to $260.72 a year, which requires contributing at least $1,042.86 across the year.

How much ACC levy do self-employed people pay in New Zealand?

This calculator includes the 1.75% ACC earner's levy, which is universal and capped once your liable earnings pass $156,641 a year. Self-employed people also pay an ACC Work levy set by their industry classification, which is not included here since it varies widely by occupation. Use the Self-Employed ACC Levy Calculator to add the Work levy for your specific classification unit.

What happens if I do not set aside enough tax from my invoices?

Because no one withholds tax on your behalf when you invoice as a sole trader or contractor, any shortfall becomes a lump-sum tax bill when you file your IR3 return. If your residual income tax is over $5,000, you will likely move onto provisional tax the following year, requiring instalment payments in advance. Under-reserving is one of the most common causes of cash flow trouble for new contractors.

Should I reserve tax weekly, monthly, or per invoice?

Per invoice is the most reliable method, since it ties the reserve directly to money you have actually received rather than an estimate of monthly income, which can be uneven for contractors. Transfer the reserved amount to a separate account as soon as each invoice is paid, before the money can be spent.

Is this the same calculation an accountant or a service like Hnry would use?

It uses the same New Zealand income tax brackets, ACC earner's levy rate and student loan threshold that Inland Revenue applies, so the underlying rates are accurate. Accounting services and accountants may also account for deductible business expenses, provisional tax already paid, and other income you have, which can change your actual position. Treat this as a reliable planning estimate, not a substitute for filing an accurate return.

Trust Compliance Cost Break-Even Calculator NZ 2026/27

At what portfolio size is a trust worth it for tax?

On the worked example, $139,534.88 of non-PIE investments, where a 39% taxpayer can distribute income to a beneficiary on 17.5% and the trust costs $1,500.00 a year to run. Below that the compliance cost exceeds the tax saved. At $400,000.00 the trust is $2,800.00 a year ahead on tax.

Does a trust save tax on a PIE investment?

Generally no, and this surprises people. A trustee investing in a multi-rate PIE can use a 28% prescribed investor rate, and Inland Revenue states that at 28% it is a final tax. An individual's PIR is also capped at 28%. So a higher earner pays 28% either way, the trust saves nothing, and the compliance cost is a pure cost.

Does keeping income in the trust save tax?

Not for a top-rate taxpayer. Trustee income is taxed at 39% from the 2024-25 income year, which is the same as the top personal rate, so retaining income saves nothing at all. The saving comes from distributing income to beneficiaries who are on lower rates, and it only exists to the extent you have such beneficiaries and the distributions are genuine.

What is the $10,000 trustee de minimis?

Trustee income of $10,000 or less in a year is taxed at 33% rather than 39%. It is a cliff rather than a threshold: exceed $10,000 and the whole of the trustee income is taxed at 39%, not just the amount above. That makes the region around $10,000 of retained income worth watching carefully.

Why did the trustee rate go up?

It moved from 33% to 39% for the 2024-25 and later income years, aligning the trustee rate with the top personal rate. Before that a trust could shelter income at 33% while the settlor paid 39%, which was the main tax reason to retain income in a trust. That advantage has gone, which is why the calculation on this page usually depends on distributing rather than retaining.

Is tax the main reason to have a trust?

No, and it has become less of one. Trusts are used for asset protection, for succession and for holding assets across generations, none of which this page prices. A trust can be entirely worthwhile while showing a negative result here. What the calculation does tell you is whether tax is contributing to the case or quietly working against it.

Can I just distribute everything to a low-income beneficiary?

Distributions have to be genuine, properly resolved and actually made or credited to the beneficiary, and the beneficiary is entitled to that money. There are specific rules limiting distributions to minors, and general anti-avoidance provisions apply where arrangements exist mainly to reduce tax. This is squarely an area to take advice on rather than to optimise from a calculator.

What does a trust cost to run each year?

It varies widely with complexity, and the components are the annual financial statements, the trust tax return, and keeping records, minutes and resolutions current. Trustees also have duties under the Trusts Act 2019 that carry their own administrative burden. Ask your accountant what they actually charge for your trust rather than using a typical figure, because the break-even moves directly with it.

Unit Economics Calculator NZ 2026/27

What are unit economics?

Unit economics is the profit and loss of a single unit of your business, being one job, one sale or one customer, rather than the whole company. It answers whether the thing you do repeatedly makes money before any consideration of scale. If a single unit loses money, doing more of them makes the loss larger, which is why unit economics has to be established before growth is a good idea rather than after.

What is contribution margin and how is it different from gross margin?

Contribution margin is what one unit contributes towards fixed costs and profit after all of its own variable costs are deducted. It is broader than gross margin because it includes variable costs that sit outside cost of goods sold, such as servicing, support, payment fees and delivery. On the default figures, revenue of $850.00 less $460.00 of direct cost and $40.00 of servicing gives a contribution margin of $350.00, which is 41.18% of revenue.

How is customer lifetime value calculated?

Contribution margin per purchase, multiplied by purchases per year, multiplied by the number of years the customer stays. On the defaults, $350.00 of contribution across 2.4 purchases a year is $840.00 a year, and over a 3.5 year lifespan that is $2,940.00 of lifetime value. Note this is a contribution-based LTV, not a revenue-based one. Quoting LTV on revenue rather than margin inflates it by the entire cost base and is one of the most common ways the figure gets misused.

What is a good LTV to CAC ratio?

A ratio above 3 to 1 is a widely used working guide, meaning a customer is worth at least three times what they cost to win. Below 1 to 1 you are losing money on every customer acquired. Very high ratios are not automatically good either: a ratio of 10 to 1 or more often means you are underinvesting in acquisition and could profitably spend more to grow. On the defaults the ratio is 13.36 to 1, which suggests acquisition spend is conservative rather than that the business is exceptional.

What is CAC payback period and why does it matter more than the ratio?

Payback is how many months of contribution it takes to recover what you spent winning the customer. It matters more than the ratio because it is a cash constraint rather than a profitability measure. A business can have an excellent LTV to CAC ratio and still fail, if the LTV arrives over four years while the CAC is paid today. On the defaults, $220.00 of CAC against $70.00 of monthly contribution is repaid in 3.14 months, which is comfortable. Beyond about twelve months, growth typically has to be funded externally.

Should acquisition cost include my own time?

Yes. In most small New Zealand businesses the largest component of customer acquisition is the owner's own selling and quoting time, and leaving it out makes CAC look artificially small. Value it at what an hour of your time costs the business, count the hours spent on quoting work you did not win as well as work you did, and divide by customers actually won. The resulting figure is usually several times the advertising spend alone.

How many units do I need to sell to cover fixed costs?

Fixed costs divided by contribution margin per unit. On the defaults, $18,000.00 of monthly fixed costs divided by $350.00 of contribution requires 51.4 units a month before the business breaks even. Every unit after that contributes its full $350.00 to profit, which is why the units immediately above break-even are far more valuable than the average unit suggests.

Why is customer lifespan the most dangerous assumption?

Because lifetime value scales directly with it and it is the hardest input to evidence, particularly for a young business that has not existed long enough to observe a full customer lifecycle. Doubling the assumed lifespan doubles LTV, which can turn an unaffordable acquisition cost into an apparently sensible one on a spreadsheet while changing nothing in reality. Where you have no history, use a short lifespan and let the actual data extend it rather than assuming a long one and discovering otherwise.

NZ Investment Property Cashflow Calculator 2026

Is rental income taxable in New Zealand?

Yes. All rental income is taxable in New Zealand. You declare it in your annual tax return (IR3) and pay income tax at your marginal rate on any net rental income after all allowable deductions. If the property makes a taxable loss after deductions, that loss is ring-fenced under current law and cannot offset other income : it is carried forward against future rental income.

Can I deduct mortgage repayments on a rental property in New Zealand?

You can deduct the interest component of your mortgage repayments, but not the principal repayment. Principal repayments reduce your debt but are not an income tax deduction. From 1 April 2025, 100% of the interest cost is deductible for residential rental properties.

What expenses can I claim on a rental property in New Zealand?

Fully deductible expenses include mortgage interest, council rates, insurance, property management fees, routine maintenance and repairs, accounting fees, advertising for tenants, body corporate levies, and chattel depreciation. Capital improvements : adding new features or significantly upgrading the property : are not immediately deductible but add to your cost base.

What is a good gross yield for a rental property in New Zealand?

In most NZ cities, gross yields for residential rental properties currently range from about 3.5% to 6%, depending on the property type and location. Auckland tends to have lower yields due to high property prices relative to rents. Regional centres often offer higher yields. A gross yield of 5% or above is generally considered reasonable for a residential investment, though the net yield after costs is what really matters.

How does the bright-line test affect my investment property?

The bright-line test taxes any gain on the sale of a residential investment property if you sell within 2 years of purchasing it (reduced from 10 years for sales on or after 1 July 2024). The gain is added to your income and taxed at your marginal rate. The main home exclusion does not apply to investment properties. See the Bright-Line Test Calculator on this site for a full assessment of your position.

Should I use an interest-only or principal-and-interest mortgage for an investment property?

Interest-only mortgages reduce monthly repayments and improve short-term cashflow, because you are not paying down the principal each month. This is attractive from a cashflow management perspective. However, you build no equity through repayments and the full loan balance is owed at the end of the IO period. Principal-and-interest loans build equity over time but have higher repayments. Most NZ investors use IO loans for investment properties for cashflow management, though banks have become more restrictive about IO terms for investors in recent years.

Break-Even Sale Price Calculator NZ

Why is the break-even price higher than what I paid for the house?

Because buying and selling both cost money, and neither cost is recovered in the price. Selling at exactly what you paid leaves you short by the commission, the GST on it, the marketing, the legal fees at both ends and anything you spent on the property. On ordinary New Zealand numbers that gap is commonly five to nine per cent of the price, which is why a property bought and sold within a short period usually loses money even when the market has not fallen.

Should I include maintenance in the calculation?

That depends on the question you are asking. Improvements that add value, like a new kitchen or an extra room, belong in the calculation because you are asking whether the sale returns them. Routine maintenance is arguably a cost of living in the house rather than an investment in it, and most people leave it out. Including it gives you a stricter break-even, and there is no wrong answer as long as you know which test you are applying.

Does the break-even price include paying off the mortgage?

No, and it should not. Repaying the loan returns money you borrowed rather than money you invested, so it is not a cost of the sale and it does not change the break-even price. What does belong is any break fee for ending a fixed rate early, because that is a genuine cost triggered by selling. If you want to know what cash you actually walk away with, that is a net proceeds question rather than a break-even one.

How is this different from the break-even holding period?

They answer the same question in different units. The holding period calculator asks how many years of growth it takes to cover the costs of buying and selling, which is useful before you buy. This one asks what price is needed to cover them, which is the more useful form once you own the house and are deciding whether to sell now, because a price is something you can compare against an appraisal.

Does tax affect the break-even price?

It can, and this calculator does not attempt it. If the bright-line test or another property tax rule applies to your sale, tax is charged on the gain and the price needed to break even after tax is higher than the figure shown here. Whether any of those rules apply depends on when you bought, what the property is used for and your own circumstances, so it is a question for Inland Revenue or your accountant rather than a calculator.

NZ Business Days Calculator 2026

How many business days are there in a year in NZ?

New Zealand has approximately 250 to 252 business days per year, depending on which days the public holidays fall on. In 2026, there are 11 national public holidays (plus your regional anniversary day), and weekends account for 104 days, leaving approximately 250 working days. The exact number varies slightly each year because some holidays can fall on weekends and may or may not be Mondayised.

What are business days in NZ?

Business days (also called working days) in New Zealand are Monday to Friday, excluding public holidays. Saturday and Sunday are not business days. The 11 national public holidays and your regional provincial anniversary day are also excluded. Business days are used for calculating legal deadlines, settlement dates, payroll periods, and contractual timeframes.

Does this calculator include Matariki?

Yes. Matariki has been a public holiday since 2022. The date changes each year as it is set by the Matariki Advisory Committee based on the Maori lunar calendar. For 2026, Matariki falls on Friday 10 July. For 2027, it falls on Friday 25 June. The calculator includes Matariki for all years from 2022 onwards.

How does Mondayisation work for business day calculations?

Mondayisation applies to Waitangi Day and Anzac Day only. If either falls on a Saturday or Sunday, the following Monday is observed as the public holiday instead. For business day calculations, the Monday is excluded (not the Saturday/Sunday). Christmas Day, Boxing Day, New Year's Day, and the Day after New Year's Day have separate transfer rules when they fall on weekends.

What is 10 business days from today in NZ?

Use this calculator to find the exact date. Enter today's date as the start, select 'Add business days' mode, and enter 10. The calculator will skip weekends and any NZ public holidays that fall within the period, giving you the correct target date. This is commonly used for Tenancy Tribunal response deadlines (10 working days), ACC claim timeframes, and contractual notice periods.

Phone and Internet Business Use Calculator NZ 2026

What percentage of my phone bill can I claim in New Zealand?

For a landline that is also your private line, Inland Revenue allows 50 percent of the rental. That figure is a stated convention rather than something you estimate, so you do not need a call log to support it. Business-related toll calls are separately deductible at 100 percent, and a line used solely for business is claimed in full for both income tax and GST. The 50 percent applies to the line rental only, which is why the rental and the calls are entered separately here.

What percentage of my internet can I claim?

There is no set percentage for internet, and this is the difference that catches people out. Inland Revenue says you can decide how to work out the business proportion but it needs to give a fair and reasonable result. That means the method has to be defensible: hours of business use against total household use, devices, or data are all workable bases. A round number with nothing behind it is the weakest position you can take, because the burden of showing the apportionment is reasonable sits with you, not with Inland Revenue.

Can I claim phone and internet if I use the square metre rate?

No, not for the shared household ones. The square metre rate is built from average household utility costs, telephone and internet among them, and Inland Revenue states that if you use that option you cannot claim any other expenses in relation to the business use of your home. Claiming the square metre rate and then adding half your line rental and a share of your internet relieves the same money twice. Mortgage interest, rates and rent are the exceptions, because the rate expressly does not cover them and they are claimed separately at the business proportion.

Is a deduction the same as getting the money back?

No. A deduction reduces the income you pay tax on, so it is worth the amount claimed multiplied by your marginal tax rate. A $1,000 claim saves $330 of tax at 33 percent, not $1,000. If you are GST registered you also recover the GST through your GST return, and the income tax deduction is then based on the GST-exclusive amount so the same money is not relieved twice. This calculator shows both parts separately for that reason.

Do I need to keep records for a phone and internet claim?

Yes, and the standard differs by component. The 50 percent landline rental needs only the bills, because the percentage is set for you. Business toll calls need enough detail to show they were business calls. The internet share needs a record of how you arrived at the percentage, kept once and revisited if your working pattern changes materially. A short written note of the method, made at the time, is worth more under review than a precise-looking percentage with nothing behind it.

Progress Payment Cashflow Calculator NZ 2026

How much cash does a project actually tie up?

Under payment on completion, all of your costs plus every day of payment terms. You fund materials and labour from your own resources for the whole build and then wait out the terms as well, so the peak is your full cost for the job and it sits there until the money lands. That figure is routinely larger than the profit on the job, which is the uncomfortable arithmetic of project work: you can be fully booked, profitable on paper, and unable to start the next job because the cash from the last one has not arrived.

How much does a deposit really help?

More than almost anything else you can negotiate, because it arrives before you have spent anything. A deposit paid up front covers your early costs at the exact moment your cash position would otherwise be falling fastest, and it reduces the peak by close to its own value. Progress claims help too but arrive later, so each one reduces the peak by less than the deposit does. If you can change only one term in a contract, the deposit is usually the one worth changing.

Why do payment terms matter so much?

Because they extend every part of the deficit at once. Terms of the 20th of the month following an invoice can mean 50 days between doing the work and being paid for it, and during all of that time you are funding your client's project from your own money. Lengthening terms does not just delay the final payment; it delays every progress claim by the same amount, so a structure that looked comfortable on 7 day terms can be unworkable on 45 day ones without a single other change.

What does the funding actually cost me?

If you fund the gap with an overdraft or a business credit facility, the cost is the balance multiplied by the rate for the days you are down. That is the number this calculator reports, and on a single job it is often small enough to look ignorable. The real cost is usually the opportunity one: cash committed to this job is cash you cannot commit to the next, so the constraint bites as a limit on how many jobs you can run at once rather than as an interest charge.

Does GST make the cashflow worse?

It can, and it is not modelled here. If you account for GST on an invoice basis, you owe the GST on a progress claim in the period you issue it, which may fall due before the client has paid you. Businesses with long payment terms and lumpy invoicing sometimes move to a payments basis for exactly this reason, subject to the turnover threshold. Retentions, which are common in construction and hold back a percentage until well after completion, are also excluded here and make the real position worse than these figures show.

Seasonal Business Cashflow Calculator NZ 2026

Why does the order of the seasons matter for cashflow?

Because a business that earns before it spends is in a completely different position from one that spends before it earns, even when the annual total is identical. Starting the year with the low season means funding months of deficit before any surplus arrives, which is where seasonal businesses fail despite being profitable across the year.

My seasonal business is profitable, so why do I run out of cash?

Profit is measured across the year, cash is experienced month by month. A business with a healthy annual surplus can still hit zero in the middle of a long low season, because the surplus arrives later than the costs. Profitability tells you the year works; the lowest cash point tells you whether you survive to see it.

How much cash should a seasonal business start the year with?

Enough to cover the deepest point of the year plus a margin. This calculator works out the deepest point directly from your own figures, which is a better answer than any rule of thumb, because it depends entirely on how long your low season is and how much still comes in during it.

Should I reserve tax during the high season?

Yes, and seasonal businesses are the case where it matters most. The high season generates the income the tax is charged on, but the bill often falls due during or after the low season, when the money has been spent covering the quiet months. Reserving as income arrives is the only reliable way through this.

Does provisional tax make seasonal cashflow worse?

It can. Provisional tax instalments fall on fixed dates that have nothing to do with your trading pattern, so an instalment can land squarely in your quietest month. If that is your situation, the ratio method or AIM may fit your cashflow better than the standard method.

Unpaid Invoice Recovery Calculator NZ 2026

Can I charge interest on an overdue invoice in New Zealand?

Only if your terms of trade provide for it and the client agreed to those terms before the work started. New Zealand has no general statutory right to interest on late commercial payment, so an interest line added to an invoice after the fact is not enforceable on its own.

What does the Disputes Tribunal cost in New Zealand?

The filing fee depends on the size of the claim: $62 for claims under $2,000, $124 for $2,000 to under $5,000, $248 for $5,000 to $30,000, and $496 for $30,001 to $60,000. The Tribunal hears claims up to $60,000. Lawyers are not allowed to represent you, so there are no legal fees, but your own time is still a cost.

How much do debt collection agencies charge in New Zealand?

Commission is typically a percentage of what they recover, commonly in the range of 10 to 25 percent, and often higher on older or harder debts. Some agencies work on a no recovery no fee basis. The percentage is worth negotiating, and worth checking against how likely recovery actually is.

When is an unpaid invoice not worth chasing?

When the cost of recovery approaches what you would recover. Small invoices reach that point quickly, because the fixed costs of chasing do not shrink with the amount owed. The other case is where the client cannot pay at all, in which case no recovery route returns anything and the cost is pure loss.

Should I count my own time as a cost of chasing an invoice?

Yes, if that time would otherwise have been billable. An hour spent chasing is an hour not earning, which makes it a real cost even though no money leaves your account. If you would have been idle anyway, the cost is lower, which is why this calculator lets you set the rate rather than assuming it.

Agency Agreements in NZ: Before You Sign

Can I cancel a real estate agency agreement in New Zealand?

Yes, in defined circumstances. If you change your mind you can cancel a sole agency in writing by 5pm on the first working day after you are given your copy. If the agent approached you unsolicited you have five working days and it does not need to be in writing. If the sole agency runs longer than 90 days, either party may cancel any time after day 90 under section 131 of the Real Estate Agents Act 2008.

What is the difference between a sole agency and a general agency?

A sole agency appoints one agency exclusively, so commission may be payable to that agency even if another sells the property. A general agency allows more than one agency to market the property, with commission going to whichever one sells it. Sole agency is the usual residential arrangement.

Do I have to sign the agency agreement at the appraisal?

No. An appraisal commits you to nothing. You are entitled to take the agency agreement away and have a property lawyer read it, and the Real Estate Authority's consumer site advises getting legal advice before signing. Every term is negotiable up to the moment you sign and effectively none of them are afterwards.

Will I still owe commission after cancelling an agency agreement?

Possibly. Most agreements provide that if the agency introduced a buyer during the term and that buyer later purchases the property, commission remains payable for a defined period after the agreement ends. Check that clause specifically, and check whether the sole agency converts into a general agency on cancellation.

Asset Turnover Ratio Guide

What is the asset turnover ratio?

It measures how efficiently a business uses its assets to generate sales, calculated as revenue divided by total assets.

How do you calculate asset turnover?

Divide net sales (revenue) for the period by average total assets. A higher ratio means more sales generated per dollar of assets.

What is a good asset turnover ratio?

It varies by industry; capital-light businesses have high ratios and asset-heavy ones lower, so compare within the same industry.

Why does asset turnover matter?

It shows how productively a business uses its assets and feeds into return-on-assets analysis of overall performance.

Budgeting on an Irregular Income

How do I budget on an irregular income?

Base your budget on a conservative average or your lowest typical month, cover essentials first, and build a buffer in the good months.

What size buffer do I need with an irregular income?

Aim to build a larger emergency fund than usual, so lean months are covered without resorting to debt.

How do I smooth an irregular income?

Pay yourself a set amount from a holding account each month, topping the account up in strong months to cover the quiet ones.

Should I save more when income is high?

Yes. In strong months, set aside extra for quieter periods and tax, rather than lifting your spending to match.

How Many Customers Are Within Reach of a Site?

How do I find out how many people live near a business site in NZ?

Pick the nearest of the 2,210 published statistical areas in the population calculator and choose a radius: it sums the Stats NZ population grid within that distance. Around the Queen Street area in central Auckland, for example, about 50,304 people live within 2 kilometres and about 173,042 within 5. The calculation runs in your browser and shows how many grid cells sit under each figure.

Is population within a radius the same as my customer base?

No, and treating it as one is the classic site-selection mistake. The radius figure is the ceiling on walk-in and local demand, not a forecast of it. It has to be cut down by how often people buy what you sell, how far they will actually travel for it, and who else already serves them, none of which the population data knows.

Should I use a radius or a drive time?

Drive time is the better model and needs routing data this site does not pretend to have. The radius is measured in a straight line, so where a harbour, river or range sits inside the circle, real reach is smaller than the figure. Auckland and Wellington sites deserve the most caution: a 10 kilometre circle on either includes a great deal of water.

How do I turn people nearby into a viability number?

Divide your revenue need by realistic spend per local customer per year, then ask whether the share of the catchment that implies is plausible against the competition already there. A break-even calculator gives the revenue need; the catchment gives the denominator; the honesty lives in the share you assume in between.

Accounting Profit Calculator

What is accounting profit?

Accounting profit is total revenue minus explicit costs, the actual recorded outgoings such as wages, rent, materials, power and interest. It is the profit figure that appears in financial statements and the one tax is assessed on. With revenue of $250,000 and explicit costs of $180,000, accounting profit is $70,000.

What is the difference between accounting profit and economic profit?

Economic profit goes one step further and also subtracts implicit costs, the value of what you gave up to run the business, such as the salary you could earn elsewhere or the return your capital could make invested somewhere else. Economic profit is always the smaller figure, and a business can show a healthy accounting profit while making an economic loss.

Is accounting profit the same as net profit?

They are close cousins. In this simple model accounting profit is revenue minus all explicit costs, which matches the idea of net profit before tax. In practice a formal net profit figure follows accounting standards, so it includes non-cash items such as depreciation and follows specific rules on timing, but both describe recorded revenue minus recorded costs.

AP Turnover Calculator

Is a high AP turnover good?

A high turnover means you pay suppliers quickly, which builds goodwill and can earn early payment discounts. However, paying too fast uses cash that could fund operations. The best level balances strong supplier terms with healthy cash flow.

Should I use COGS or purchases?

Credit purchases are the most precise base, but cost of goods sold is a common and reasonable proxy when purchases are not readily available. Whichever you choose, keep it consistent across periods. Avoid using total expenses, which include items unrelated to suppliers.

How is the payment period found?

Divide the days in the year, usually 365, by the turnover ratio. This converts the number of payment cycles into an average number of days to pay. A higher figure means you take longer to settle.

AR Turnover Calculator

What is a good receivable turnover?

A higher turnover is generally better because it means faster collection and less cash tied up in debtors. The right level depends on your credit terms and industry. Compare the collection period it implies against the terms you actually offer.

Should I use net credit sales?

Yes, where you can. Cash sales never create receivables, so including them overstates turnover. Net credit sales, after returns and allowances, give the most accurate ratio.

How is the collection period found?

Divide the number of days in the year, usually 365, by the turnover ratio. This converts the number of collection cycles into an average number of days to collect. A lower figure means customers pay faster.

Add Business Days Calculator NZ

What is a business day?

A business or working day is a weekday that is not a public holiday, Monday to Friday excluding holidays. Many legal and commercial deadlines, like settlement dates and notice periods, are counted in working days rather than calendar days.

Does this include New Zealand public holidays?

You can choose to skip national public holidays, which the tool does using a built-in list. It covers nationwide holidays only, so regional anniversary days are not included; add those manually if they apply to your region.

Why count in working days?

Contracts, tenancy notices, and many official processes specify a number of working days so that weekends and holidays do not unfairly shorten the time. Counting them by hand is error-prone, which is what this tool avoids.

ARR Calculator

What is ARR?

Annual Recurring Revenue is the annualised value of your recurring subscription revenue, normally twelve times your Monthly Recurring Revenue. It is the headline figure used to describe the size, growth and valuation of a subscription business.

What is the difference between ARR and revenue?

ARR is a point-in-time run-rate of recurring revenue, the annual value of what you are earning now from subscriptions. Total revenue is what you actually recognised over a period and can include one-off fees and services that ARR excludes.

How is ARR different from MRR?

They measure the same recurring revenue over different periods: ARR is the annual figure and MRR the monthly one, with ARR equal to twelve times MRR for a steady base. ARR is used for scale and valuation, MRR for month-to-month tracking.

ARR Growth Rate Calculator

What is the difference between ARR and MRR growth?

ARR growth measures change over a full year, while MRR growth measures change month to month. ARR is usually MRR multiplied by twelve. The formula is the same, only the time period and scale differ.

What counts as a healthy ARR growth rate?

It varies by stage. Early companies often double or triple ARR, while larger, more mature businesses may grow at a steadier pace and still create strong value. Compare your rate with similar companies and your own history rather than a single benchmark.

Should ARR include one-off revenue?

No. ARR should reflect recurring subscription value only, so professional services, setup fees and other once-off income are excluded. Keeping the definition consistent makes your growth rate trustworthy.

ARR per Employee Calculator

What counts as an employee here?

Use full time equivalents, or FTE, rather than raw headcount. A half time employee counts as 0.5 and two half timers count as one FTE. This keeps the comparison fair across companies with different working patterns.

What is a good ARR per employee?

It varies widely by stage and model, so there is no universal target. Mature, efficient SaaS businesses often aim well above $150,000 per employee, while early stage companies investing in growth sit lower. The trend over time matters more than any single figure.

Should services revenue be included?

For a clean efficiency read, base the calculation on recurring subscription revenue only. Including one off services revenue can flatter the number. If you do include it, be consistent every period.

Asset Turnover Ratio Calculator

What is the Asset Turnover Ratio Calculator?

Calculate your business asset turnover ratio to measure how efficiently your company converts assets into revenue. Enter net sales and average total assets for an instant result.

Is the Asset Turnover Ratio Calculator free to use?

Yes. The Asset Turnover Ratio Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

How is the asset turnover ratio calculated?

It divides net sales or revenue by average total assets, showing how many dollars of sales each dollar of assets generates. This is a standard efficiency ratio used the same way worldwide. Results are indicative estimates and not financial advice.

Break-Even Calculator

What is the break-even point?

The break-even point is the number of units you must sell to cover all your costs, with no profit and no loss. Below it you make a loss, above it you make a profit. It is found by dividing fixed costs by the contribution margin per unit.

What is contribution margin?

Contribution margin is the selling price per unit minus the variable cost per unit. It is the amount each sale contributes towards your fixed costs and then profit. If the price is below the variable cost, you can never break even.

How do I lower my break-even point?

Raise the price, cut the variable cost per unit, or reduce fixed costs. Each lifts the contribution margin or lowers the costs to cover, so you need fewer sales to break even. The calculator updates instantly so you can test each change.

Break Even Milk Price Calculator NZ

What is a break even milk price?

The milk price at which the money coming in exactly covers everything going out. Add farm working expenses, interest, rent, tax and drawings, subtract any income that is not milk, and divide by the kilograms of milk solids produced. The result is in dollars a kilogram of milk solids, which is the same unit the payout is quoted in, so it can be held directly against a forecast.

Should drawings be in the break even calculation?

If you want a figure that tells you whether the business survives the season, yes, because the household has to be paid whatever the payout does. Some break even figures are quoted excluding drawings and tax, which produces a lower and more flattering number that answers a different question. This page includes both by default and lets you zero them, but it names which version you are looking at rather than leaving it ambiguous.

What does it mean if break even is above the forecast?

That at the currently forecast payout the farm does not cover its costs, and the gap multiplied by production is roughly the shortfall for the season. It does not automatically mean trouble, since the forecast moves and there is usually a range around it, but it does mean the plan depends on the payout improving rather than on anything the farm controls. Comparing break even against the bottom of the published range rather than the middle is the more useful test.

Burn Rate Calculator

What is the difference between gross and net burn?

Gross burn is your total monthly cash spend before any revenue. Net burn subtracts your monthly revenue from that spend, showing the cash you actually lose each month. Net burn is the figure that drives your runway.

What does a negative net burn mean?

A negative net burn means your revenue is greater than your spend, so you are cash flow positive. Your cash balance is growing rather than shrinking. This is the goal for a sustainable business.

How does burn rate relate to runway?

Runway is your current cash balance divided by your net burn rate. If you hold $480,000 cash and burn $40,000 net per month, you have about twelve months of runway. Watching both together helps you plan funding.

Business Budget Calculator

How do I work out my net profit?

Net profit is your revenue minus your total expenses for the period. If a business takes 60,000 dollars of revenue in a month and spends 48,800 dollars across wages, stock, rent, marketing, utilities and other costs, its net profit is 11,200 dollars for that month, before income tax.

What is a good net profit margin?

Net margin is net profit divided by revenue, shown as a percentage. What counts as good varies a lot by industry: retail and hospitality often run on thin single-digit margins, while services can reach 20 percent or more. In the example above, 11,200 on 60,000 is a margin of about 18.7 percent.

Should I include GST in my budget?

If you are GST registered, it is usually clearest to budget on GST-exclusive figures, because the GST you collect is not really yours to keep and the GST you pay is claimed back. Enter revenue and expenses net of GST so your profit reflects what the business actually earns.

Business Interruption Cover Calculator NZ

What does business interruption insurance cover?

It covers the loss of income and ongoing fixed costs when an insured event, such as a fire or flood, stops your business trading. The cover is usually based on gross profit over an indemnity period.

What is the indemnity period?

It is the maximum time the policy will pay out while you recover, often 12, 18 or 24 months. Choose a period long enough to rebuild, restock and win back customers, which can take far longer than fixing the premises.

How is the sum insured worked out?

Take your annual gross profit, scale it to the indemnity period, and add an allowance for the extra costs of keeping going, such as temporary premises. This calculator does that to give an indicative figure.

Business Startup Cost Calculator NZ 2026

How much does it cost to start a business in NZ?

It varies hugely, from a few hundred dollars for a home-based service to tens of thousands for a fitted-out retail or trade business with stock and equipment. The key is to add a working capital buffer to the obvious setup costs, which this calculator does.

What is working capital and why does it matter?

Working capital is the cash that covers wages, rent and bills while revenue builds in the early months. Underestimating it is the most common cause of startup failure, so budget a generous buffer rather than assuming sales will arrive on day one.

What setup costs do people forget?

Commonly missed costs include accounting and legal setup, insurance, a website and branding, a premises bond, and the working capital buffer itself. Listing each here gives a fuller, more realistic funding figure than a quick guess.

Business Valuation Calculator

What is the earnings multiple method?

It values a business by multiplying its annual earnings, such as SDE or EBITDA, by a multiple that reflects risk, size and growth. A higher multiple means buyers will pay more for each dollar of earnings. It is the most common method for small business sales.

What multiple should I use?

Multiples depend on your industry, earnings stability, growth and how reliant the business is on the owner. Recurring revenue and a strong team push the multiple up, while owner dependence pushes it down. Look at recent comparable sales in your sector.

Is this a formal valuation?

No. This is an indicative estimate only and ignores assets, debt and many deal specific factors. For a sale, purchase or financing decision, engage a qualified business valuer or accountant.

CAC Calculator

What is Customer Acquisition Cost?

CAC is the total sales and marketing spend over a period divided by the number of new customers it brought in. It measures how much it costs to win a customer and is central to judging whether growth is profitable and sustainable.

What should I include in CAC?

For a fully loaded CAC, include all acquisition costs: sales and marketing salaries and commissions, advertising, software and tools, and related overheads, not just ad spend. This gives the true cost of acquiring a customer rather than an understated figure.

What is a good CAC?

CAC is best judged relative to customer lifetime value, not in isolation. A common target is recovering CAC within about a year and earning at least three times CAC over the customer's lifetime. The right level depends on your margins, price and sales model.

CAC Payback Calculator

What is the CAC payback period?

It is the number of months it takes to recover the cost of acquiring a customer from the gross profit they generate. It equals CAC divided by the monthly revenue per account times the gross margin, and it shows how quickly a customer becomes cash-flow positive.

What is a good CAC payback period?

Under twelve months is generally healthy for SaaS, under six months is excellent, and over eighteen months is a concern. A shorter payback means growth is more self-funding and cash-efficient, tying up less capital and reducing churn risk before recouping the cost.

Why use gross profit rather than revenue?

Because servicing a customer has costs, counting full revenue would understate the payback period. Applying gross margin counts only the profit available to recover the acquisition cost, giving a realistic number of months that reflects true cash recovery.

CAC Ratio Calculator

How is the CAC ratio calculated?

It is the gross profit on new ARR divided by your customer acquisition spend. Gross profit is new ARR multiplied by your gross margin percentage. So a ratio of 1.2 means each dollar of spend returned $1.20 of first year gross profit.

What is a good CAC ratio?

As a rough guide, above one is encouraging and below one is a warning sign. Many efficient SaaS businesses target a ratio comfortably above one. Stage, margin and growth ambitions all shape what good looks like for you.

Why use gross margin instead of raw revenue?

Because not every dollar of ARR is profit. Applying gross margin accounts for the cost of hosting, support and delivery, giving a truer picture of return on acquisition spend. It stops the ratio from overstating efficiency.

CAGR Calculator NZ 2026

What is the CAGR Calculator NZ 2026?

Calculate the Compound Annual Growth Rate (CAGR) for any investment, revenue, or metric. Enter start value, end value, and number of years for an instant CAGR result with full explanation.

Is the CAGR Calculator NZ 2026 free to use?

Yes. The CAGR Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the CAGR Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Capital vs Revenue Tax Calculator NZ

Does New Zealand tax capital gains?

There is no general capital gains tax, so gains genuinely on capital account are usually not taxed. But gains on revenue account, from trading, a business activity, or assets bought to resell, are fully taxable, and specific rules like the bright-line test catch some property gains.

How do I know if my gain is capital or revenue?

It depends on the facts: your intention when you acquired the asset, how often you make similar transactions, whether you deal in such assets as a business, and any specific rules. The distinction can be difficult, so professional advice is strongly recommended.

Why does the classification matter so much?

Because a revenue-account gain is taxed at your marginal rate, up to 39 percent, while a capital-account gain is generally untaxed. On a large gain that difference can be many thousands of dollars, which is why getting the classification right, and defensible, is so important.

CAPM Calculator

What is the CAPM Calculator?

Calculate the expected return of any asset using the Capital Asset Pricing Model. Enter the risk-free rate, beta, and expected market return for an instant CAPM result. Standard and market risk premium methods included.

Is the CAPM Calculator free to use?

Yes. The CAPM Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the CAPM Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Cash Flow Calculator

What is net cash flow?

Net cash flow is the difference between the cash coming in and the cash going out over a period. A positive figure means you took in more than you spent. A negative figure means your cash position shrank.

How is cash flow different from profit?

Profit measures income against expenses, including non cash items and amounts not yet paid or received. Cash flow tracks the actual money moving in and out. A business can be profitable but still short of cash if customers pay late.

What counts as an inflow or outflow?

Inflows include customer payments, loans received, and other cash coming into the business. Outflows include wages, supplier bills, rent, tax, and loan repayments. Use the totals for the period you are reviewing.

Cash Runway Calculator

What is cash runway?

Cash runway is the number of months your business can keep operating before it runs out of cash, assuming spending stays steady. It is your cash on hand divided by your monthly net burn. It is a key planning figure for any business spending more than it earns.

What is net burn?

Net burn is the cash your business loses each month after accounting for any revenue. It is your monthly outflows minus your monthly inflows. Use net burn rather than gross spending so the runway reflects your real position.

What if I am cash flow positive?

If your income covers your costs your net burn is zero or negative and you are not consuming cash, so a runway figure does not apply. In that case runway is effectively unlimited at the current rate. This tool is most useful when you are spending down a balance.

Churned MRR Calculator

What is churned MRR?

Churned MRR is the monthly recurring revenue lost from customers who cancelled entirely in a period. It does not include downgrades, which count as contraction MRR. It is the basis for your gross MRR churn rate.

How is the churn rate calculated?

The gross MRR churn rate divides churned MRR by your starting MRR and multiplies by one hundred. It shows what share of your recurring revenue you lost to cancellations. A lower rate is better.

What is a healthy churn rate?

It varies by market and customer size, but lower is always better and small monthly rates compound fast over a year. Many SaaS businesses target low single digit monthly churn. Track the trend rather than chasing one fixed number.

Committed MRR Calculator

How is CMRR different from MRR?

MRR is your recurring revenue right now, while CMRR adjusts it for changes you already know about. CMRR adds signed expansions that have not started and subtracts confirmed churn and downgrades. It is a forward looking view of your committed base.

What should I count as a committed add?

Only revenue from contracts that are signed or trials that have firmly converted. Pipeline you hope to win does not belong in CMRR. Keeping the bar high stops the figure being overstated.

How do I annualise CMRR?

Multiply your monthly CMRR by twelve to get an annualised figure. This is sometimes called committed ARR. It assumes the committed base holds steady across the year.

Contraction MRR Calculator

What is contraction MRR?

Contraction MRR is recurring revenue lost when existing customers reduce their spend by downgrading or cutting seats, without leaving. It differs from churn, where the customer cancels entirely. Both reduce your MRR but signal different problems.

How is the contraction rate worked out?

The contraction rate divides contraction MRR by your starting base MRR and multiplies by one hundred. It shows what share of your recurring base shrank in the period. A lower rate is healthier.

Why track contraction separately from churn?

Contraction customers are still with you and may be saved, whereas churned customers have gone. Tracking them apart helps you spot early warning signs and target retention efforts. It also keeps your MRR reporting accurate.

Contraction Revenue Calculator

What is contraction revenue?

It is recurring revenue lost when existing customers reduce their spending without leaving, by downgrading plans, cutting seats or dropping add-ons. It is distinct from churn, where the customer cancels entirely, and it quietly pulls net revenue retention down.

How is the contraction rate calculated?

Divide the contraction MRR, the revenue lost from downgrades and reduced usage, by your starting MRR. The result is the percentage of your existing recurring revenue lost to contraction over the period, before churn or expansion are considered.

Why does contraction matter?

Because it erodes the revenue base quietly, without the clear signal of a cancellation. High contraction forces more new sales and upsells just to stay flat. Since contracted customers have not left, addressing the causes can often win the revenue back.

Contribution Margin Calculator

What is contribution margin?

It is the selling price of a unit less its variable cost. The amount left over contributes towards your fixed costs and then to profit. It is the foundation of break-even and pricing analysis.

What does the contribution margin ratio show?

It shows contribution margin as a percentage of the selling price, so it tells you what share of each sales dollar is left after variable costs. A 40 percent ratio means 40 cents in every dollar of revenue helps cover fixed costs and profit. It makes products easy to compare.

Which costs count as variable?

Only costs that rise and fall with each unit sold, such as materials, freight and sales commission. Fixed costs like rent and salaries are excluded. Putting fixed costs in the variable figure understates your true contribution.

Course Fee vs Earnings Calculator NZ 2026

Why include income given up while studying?

Full-time study means missing salary you would otherwise earn, which is often the biggest cost of a qualification. Ignoring it makes study look cheaper than it is. This calculator adds that foregone income to the fee for a true cost.

How is lifetime gain different from simple ROI?

This measures the extra earnings across your remaining working years and subtracts the true cost including foregone income, giving a net lifetime gain. A simple ROI over a few years can miss both the opportunity cost of study and the long tail of higher earnings.

Should I study full-time or part-time?

Part-time study while working sharply reduces foregone income, often making the numbers far more favourable even if it takes longer. Compare both by changing the months studying and the income given up, and weigh the result against lifestyle and study load.

Course ROI Calculator NZ 2026

How do I know if a course is worth it?

Compare the course cost against the extra income it brings. A short payback period and a high return on investment mean the course pays for itself quickly. If the payback runs many years, weigh the non-financial benefits and consider whether the cost is justified.

What salary uplift should I use?

Use a realistic, conservative figure for the extra you would earn because of the qualification, not your total future salary. Look at job ads and pay data for roles the course leads to, and subtract what you earn now.

Does ROI capture everything?

No. This measures the financial return only. Many courses also bring job security, satisfaction, a career change or a network, which are real but harder to put a dollar on. Use the ROI as one input alongside those wider benefits.

Customer Acquisition Efficiency

What is customers per $1,000?

It is the number of new customers you win for every $1,000 of acquisition spend. It lets you compare campaigns or channels of different sizes on the same footing. A higher number means more efficient acquisition.

How is cost per customer worked out?

It is your total acquisition spend divided by the number of new customers won, often called CAC. So $60,000 of spend winning 48 customers is a CAC of $1,250. Lower is better, as long as quality holds up.

What spend should I include?

Include the full cost of acquiring customers, advertising, salaries, commissions and tools, not just media. Leaving costs out makes acquisition look cheaper than it is. Be consistent every period.

Customer Churn Rate Calculator

How do I calculate churn rate?

Divide the number of customers who left during a period by the number you had at the start, then express it as a percentage. The retention rate is one hundred minus the churn rate. This calculator also annualises the monthly figure for you.

What is a good churn rate?

Lower is better, but a good level depends on your market. For businesses serving small customers, a few percent monthly may be normal; for those serving large enterprises, monthly churn should be very low, often well under one percent. Compare against your segment.

Why is annualised churn higher than twelve times monthly?

Because churn compounds. Each month's loss is applied to a smaller base, so the cumulative annual loss is greater than simply multiplying the monthly rate by twelve. A 2 percent monthly churn compounds to about 21.5 percent over a year, not 24 percent.

Customer Engagement Score Calculator

How is the engagement score calculated?

Each signal score is multiplied by its weight, the results are added, and the total is divided by the sum of the weights. This gives a weighted average from 0 to 100. The weights reflect which signals matter most.

Which signals should I use?

Common ones are login frequency, feature use and key actions completed. You can adapt the inputs to your product. Choose signals that genuinely reflect value, not just activity.

How is this different from a health score?

Engagement focuses on product activity, while a health score blends engagement with support, NPS and other factors. Engagement is often one input into the wider health score. Both are best tracked as trends.

Customer Health Score Calculator

How is the health score calculated?

Each component score is multiplied by its weight, the results are added, and the total is divided by the sum of the weights. This gives a weighted average from 0 to 100. The weights let you reflect what matters most.

What do the bands mean?

A score of 70 or above is healthy, 40 to under 70 is at risk, and under 40 is critical. They are prompts for action, not final verdicts. Always pair the band with a human read of the account.

How should I set the weights?

Start with equal weights, then adjust as you learn which signals predict churn for your product. Weights do not need to add to 100 because the tool divides by their total. Review them periodically.

Customer Lifetime Calculator

How is customer lifetime calculated from churn?

The average lifetime in months is one divided by the monthly churn rate written as a decimal. For example, a 2.5 percent monthly churn rate gives one divided by 0.025, which is 40 months. A lower churn rate produces a longer lifetime.

Why does a small change in churn matter so much?

Because lifetime is the inverse of churn, cutting churn has an outsized effect. Halving churn roughly doubles the expected lifetime, which can sharply increase customer lifetime value and the budget you can justify for acquisition.

Is this an exact prediction?

No. It is an average estimate based on your current churn rate and assumes that rate holds steady. Real lifetimes vary by customer and change over time, so treat the figure as a planning guide rather than a guarantee.

Customer Lifetime Value (CLV) Calculator NZ 2026

What is customer lifetime value?

It is the total profit an average customer brings over their entire relationship with your business, not just the first sale. It combines how much and how often they buy, how long they stay, and your margin, giving the true value of winning and keeping a customer.

How much should I spend to acquire a customer?

A common rule of thumb is to keep customer acquisition cost to about a third of customer lifetime value, leaving room for profit and overheads. This calculator suggests that maximum, but the right ratio depends on your margins, growth goals and cash position.

How do I increase customer lifetime value?

Lift the average sale, encourage more frequent purchases, improve gross margin, and above all keep customers longer, since retention multiplies every other factor. Small gains in how long customers stay can increase CLV substantially, which is why retention is so valuable.

Customer Retention Rate Calculator

How is customer retention rate calculated?

Subtract new customers acquired from your ending customer count, then divide by your starting customer count and multiply by 100. This isolates how many original customers you kept. It excludes new sign ups so it measures true retention.

What is the difference between retention and churn?

Retention is the share of customers you keep, while churn is the share you lose. They add up to 100 percent over the same period. If your retention rate is 90 percent, your churn rate is 10 percent.

What is a good retention rate?

It varies widely by industry and pricing model. Subscription and SaaS businesses often target high rates because lost customers are expensive to replace. Compare against your own history and similar businesses rather than a single benchmark.

Contractor Day Rate Calculator NZ

Why is a contractor day rate higher than a salary equivalent?

A contractor gets no paid annual leave, sick leave or public holidays, no employer KiwiSaver contribution, and pays their own ACC, plus they only earn on billable days. The day rate has to cover all of that, so it is higher than a simple salary divided by working days.

How many billable days are in a contracting year?

A full year has about 260 working days, but contractors lose time to leave, public holidays, sickness and gaps between contracts. Many use around 220 billable days as a realistic planning figure, though it depends on your situation.

Does the day rate need to cover ACC and KiwiSaver?

Yes. As a contractor you pay your own ACC levies and there is no employer KiwiSaver contribution, so your rate needs to be high enough to cover these on top of the leave and downtime an employee is paid for.

Days Sales Outstanding Calculator

What is a good days sales outstanding figure?

It depends on the payment terms you offer. If your terms are 30 days, a DSO close to 30 suggests customers pay on time, while a figure well above that points to late payment. Compare your DSO with your terms rather than a fixed target.

What period should I use?

Match the period to the revenue you enter. Use 365 days with a full year of revenue, or about 30 days with one month of revenue. Mixing a yearly day count with monthly revenue will give a wrong result.

Why did my DSO suddenly rise?

A jump can be caused by slower paying customers, weaker credit control, or one or two large invoices sitting unpaid near the reporting date. Review your aged receivables to find the cause before drawing conclusions.

Deferred Revenue Calculator

What is deferred revenue?

Deferred revenue is money received in advance for service you have not yet delivered. It sits on the balance sheet as a liability until you earn it. As time passes, it is released into recognised revenue.

How is deferred revenue calculated here?

The calculator multiplies the contract value by the share of months still remaining in the term. The remaining portion is deferred, and the elapsed portion has been recognised. This assumes service is delivered evenly across the term.

Is deferred revenue a liability?

Yes. Because you owe the customer future service, deferred revenue is recorded as a liability until it is earned. Once you deliver the service, it moves out of deferred revenue and into recognised revenue.

Digital Ad Break-Even Calculator

What is the Digital Ad Break-Even Calculator?

Calculate the maximum cost-per-click (CPC) your digital ad campaign can afford. Enter conversion rate, average order value, and target margin to find your break-even CPC instantly.

Is the Digital Ad Break-Even Calculator free to use?

Yes. The Digital Ad Break-Even Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Digital Ad Break-Even Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

EBIT Calculator

What is the EBIT Calculator?

Calculate your business EBIT (Earnings Before Interest and Tax) to measure core operating profitability. Enter your revenue and operating expenses for an instant EBIT and EBIT margin result.

Is the EBIT Calculator free to use?

Yes. The EBIT Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the EBIT Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

EBITDA Calculator

What is the EBITDA Calculator?

Calculate your business EBITDA to measure operating performance before non-cash and financing charges. Essential for valuation, business lending, and investor analysis.

Is the EBITDA Calculator free to use?

Yes. The EBITDA Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the EBITDA Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

EBITDA Margin Calculator

What does EBITDA stand for?

EBITDA is earnings before interest, tax, depreciation and amortisation. It measures operating profitability by removing financing, tax and non cash charges. This makes it easier to compare the underlying performance of different businesses.

How do I work out EBITDA if I only have net profit?

Start with net profit and add back interest, tax, depreciation and amortisation. The result is your EBITDA. You can then divide it by revenue to get the margin.

Is a higher EBITDA margin always better?

A higher margin usually points to better pricing and cost control, but the right level depends heavily on your industry. Capital light service firms often run higher margins than retailers. Compare against peers in your own sector rather than a fixed target.

True Employee Cost Calculator

What does the true cost of an employee include?

It includes the base salary plus compulsory employer KiwiSaver contributions and the ACC work levy. On top of that you add overheads such as workspace, equipment, software, training and management time. The total is usually well above the headline salary.

How much is employer KiwiSaver in New Zealand?

The minimum compulsory employer contribution is 3.5 percent of gross pay for eligible employees. Some employers choose to pay more as part of a package. This calculator lets you set the rate so you can model either case.

Why add an overhead percentage?

Every employee uses shared resources that cost money beyond their pay. Expressing those as a percentage of salary gives a quick, consistent way to spread them across roles. Adjust the percentage to match your real fixed and support costs.

Expansion MRR Calculator

What is expansion MRR?

Expansion MRR is the additional monthly recurring revenue from existing customers who upgrade, add seats or buy add-ons. It excludes brand new customers, which count as new MRR. It is a key driver of net revenue retention.

Why show it as a percent of base?

Expressing expansion MRR as a percentage of your starting base MRR shows how much extra revenue your current customers add relative to the book you hold. It makes the figure comparable across periods of different size. A higher percentage signals strong account growth.

What counts as expansion?

Upgrades to higher plans, extra user seats and purchases of add-on modules all count, as long as they come from existing customers. Reactivated or brand new customers are tracked separately. Keep the categories consistent each period.

Expansion Revenue Calculator

What is expansion revenue?

It is the additional recurring revenue earned from existing customers through upsells, where they move to higher-value plans, and cross-sells, where they buy additional products. It is high-margin, low-cost growth that drives net revenue retention above 100 percent.

How is the expansion rate calculated?

Add your upsell and cross-sell MRR to get total expansion MRR, then divide by your starting MRR. The result is the percentage by which existing customers grew their recurring revenue over the period, before any new customers are counted.

Why is expansion revenue so valuable?

Because it comes from customers who already trust you, it costs very little to acquire and carries high margin. It lifts lifetime value and net retention, and it reduces the need to win new customers just to grow, making it some of the most profitable growth available.

Farm Irrigation Cost Calculator NZ

How do you calculate irrigation pumping cost?

Power in kilowatts is the flow in litres a second multiplied by the total head in metres and by gravity, divided by the pump and motor efficiency. Multiply that by the hours run and by your electricity price and you have the cost. The physics part is exact: lifting one litre one metre takes a fixed amount of energy. Efficiency is where the real variation sits, and a worn pump running at 55 percent instead of 75 costs a third more for exactly the same water.

What is total head?

The full pressure the pump has to work against, expressed in metres. It is the vertical lift from the water source to the outlet, plus the operating pressure the sprinklers need, plus friction losses in the pipework. Friction is the part most often left out, and on a long mainline it can be a substantial share of the total, which is why an undersized pipe costs money every hour the pump runs rather than only once at installation.

Why express irrigation cost per millimetre?

Because it is the unit the decision is actually made in. You do not decide to run the pump for six hours, you decide to put 10 millimetres on a paddock, and cost per millimetre per hectare lets that decision be priced directly. It also makes systems comparable: a pivot and a travelling irrigator applying the same depth to the same area can differ substantially once the pumping cost per millimetre is worked out.

Free Cash Flow Calculator

What is free cash flow?

Free cash flow is the cash a business has left after funding its operations and its capital spending. It is calculated as operating cash flow minus capital expenditure. It shows the cash available for debt, dividends, or reinvestment.

Why does free cash flow matter more than profit?

Profit includes non cash items and accounting choices that can flatter the result. Free cash flow tracks actual cash and is harder to manipulate. Strong, steady free cash flow is a good sign of underlying health.

Can free cash flow be negative?

Yes. A negative figure means capital spending exceeded the cash generated by operations in the period. That can be fine for a growing business investing heavily, but sustained negative free cash flow is worth a closer look.

Gross Profit Calculator

What is the difference between gross profit and net profit?

Gross profit is revenue minus the direct cost of goods sold, before overheads. Net profit goes further and subtracts all other expenses such as rent, wages, interest and tax. Gross profit shows the core profitability of your sales, while net profit shows what you actually keep.

What should I include in cost of goods sold?

Include only the direct costs of producing or buying what you sold, such as materials, stock purchases, freight inwards and direct labour. Leave out fixed overheads like rent, admin salaries and marketing. Those are deducted later when you work out net profit.

Is GST included in these figures?

You should use GST exclusive figures for both revenue and COGS so the margin is not distorted. Most businesses report profit on a GST exclusive basis. Be consistent so the percentage is meaningful.

Gross Profit Margin Calculator

What counts as cost of goods sold?

Cost of goods sold is the direct cost of the products or services you sell, such as materials, stock for resale, freight in, and direct labour. It excludes overheads like rent, marketing, and admin wages. Keeping COGS consistent makes your margin comparable over time.

What is a good gross profit margin?

It varies widely by industry. Retail and grocery often run on thin margins while software and many services run much higher. Compare your margin with similar businesses and watch the trend rather than chasing one number.

How is gross margin different from net margin?

Gross margin only deducts direct costs from revenue. Net margin deducts all expenses, including overheads, interest, and tax. Net margin is always the same or lower than gross margin.

Gym Membership Break-Even Calculator NZ

How do I know if my gym membership is worth it?

Work out your cost per visit by dividing the monthly fee by how often you go, then compare it to the casual entry price. If your cost per visit is below the casual price, the membership is saving you money; if it is above, you would be better off paying casually.

What is the break-even number of visits?

It is the monthly fee divided by the casual visit price. Go more often than this each month and the membership is cheaper than paying per visit; go less often and casual entry would cost you less. This calculator works it out for you.

Should I cancel a membership I rarely use?

If your visits are consistently below the break-even point, casual entry or a cheaper plan would save money. But also consider whether a membership motivates you to go more. The calculator gives you the hard numbers to weigh against the behavioural benefit.

Inventory Turnover Calculator

Should I use sales or cost of goods sold?

Use cost of goods sold, because average inventory is recorded at cost. Using sales revenue, which includes your margin, would overstate the turnover ratio. Keeping both figures on a cost basis gives a true comparison.

How do I find average inventory?

The usual method is to add your opening and closing inventory at cost and divide by two. For businesses with seasonal swings, averaging several month end balances gives a more reliable figure. Use the same basis each period so trends stay comparable.

Is a higher inventory turnover always better?

Usually a higher turnover means stock is selling well and cash is not tied up, but very high turnover can risk stockouts and lost sales. It can also reflect heavy discounting that hurts margin. Balance turnover against service levels and profitability.

IRR Calculator

What is the IRR Calculator?

Calculate the Internal Rate of Return (IRR) for any series of cash flows. Enter your initial investment and projected returns to find the discount rate that makes NPV equal to zero.

Is the IRR Calculator free to use?

Yes. The IRR Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the IRR Calculator made for New Zealand?

Yes. It is built for use in New Zealand. Results are indicative estimates and not financial advice.

Lead to Customer Conversion Rate Calculator

How do I calculate lead to customer conversion rate?

Divide the number of customers you won by the total number of leads in the period, then express it as a percentage. This calculator does it for you and also shows how many leads did not convert.

What is a good conversion rate?

It varies widely by channel and lead quality. Broad top-of-funnel leads may convert in the low single digits, while warm, qualified leads convert much higher. The most useful comparison is against your own past performance and across your channels.

Why does improving conversion lower acquisition cost?

Because it produces more customers from the leads you already pay to generate. If you spend the same to create leads but convert a higher share of them, the cost spread across each new customer falls, directly reducing your customer acquisition cost.

Logo Churn Calculator

Why annualise the churn rate?

Annualising puts monthly and yearly figures on the same scale so you can compare them fairly. Because a fixed share of customers is lost each month, compounding twelve monthly rates gives a higher annual figure than simply multiplying by twelve.

What is the difference between logo churn and revenue churn?

Logo churn counts each lost customer equally, while revenue churn weights losses by how much each customer paid. You can have low logo churn but high revenue churn if a few large accounts leave. Tracking both is wise.

What is an acceptable logo churn rate?

It depends on your market. Businesses serving large enterprises usually keep churn very low, while those serving small businesses or consumers tend to see higher rates. Compare against your own history and similar companies rather than one fixed number.

LTV to CAC Ratio Calculator

What is a good LTV:CAC ratio?

Three to one or higher is the widely used benchmark for healthy SaaS unit economics, meaning each dollar of acquisition spend returns at least three dollars of lifetime value. A ratio of three to five is often considered the sweet spot.

What does a ratio below 1 mean?

It means a customer's lifetime value is less than what it cost to acquire them, so the business loses money on every customer. That is an unsustainable model that needs either lower acquisition costs, higher retention, or more revenue per customer.

Can the ratio be too high?

Yes. A very high ratio, above five or so, can signal that you are under-investing in growth and could afford to spend more on acquisition to grow faster. It is worth reading alongside the CAC payback period and your growth rate.

Margin of Error Calculator

What is the margin of error formula?

The margin of error is z times the square root of p(1-p)/n, where z is the critical value for your confidence level (1.96 for 95%), p is the sample proportion, and n is the sample size. The result is multiplied by 100 to express it as a percentage.

How does sample size affect the margin of error?

Margin of error decreases as sample size increases, but because n sits under a square root, you need to quadruple the sample size to halve the margin of error. Doubling from 100 to 200 reduces the MOE by about 29%, not 50%.

What confidence level should I use?

95% confidence is the standard in social research and polling. It means that if you repeated the survey many times, about 95% of the resulting intervals would contain the true population value. Some fields use 99% for greater certainty at the cost of a wider interval.

Markup Calculator

What is the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A product costing $100 sold for $150 has a 50% markup but a 33.3% margin. They describe the same dollar profit from different angles, so they are never the same number.

How do I calculate selling price from markup?

Multiply the cost by 1 plus the markup as a decimal. A $100 cost with a 50% markup is 100 times 1.5, which is a $150 selling price. The gross profit is $50.

How do I convert markup to margin?

Margin equals markup divided by (1 plus markup). A 50% markup is 0.5 divided by 1.5, which is 33.3% margin. The calculator shows both so you do not have to convert by hand.

Markup vs Margin Calculator NZ 2026

What is the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same dollar profit gives a higher markup figure than margin figure. A 50 percent markup, for example, is only a 33.3 percent margin.

How do I convert markup to margin?

Margin equals markup divided by one plus markup. A 50 percent markup is 0.5 divided by 1.5, or 33.3 percent margin. This calculator shows both at once so you never have to convert by hand or risk under-pricing.

Should I add GST to the selling price?

This calculator works with the GST-exclusive cost and price. If you sell to the public, add 15 percent GST to the selling price separately using the GST calculator, and remember GST is not part of your profit, it is collected for Inland Revenue.

MRR Calculator

What is MRR?

Monthly Recurring Revenue is the predictable revenue your subscriptions generate each month, normalised so annual plans are counted as one-twelfth per month. It is the core metric of a subscription business and the basis for growth, churn and lifetime-value calculations.

What should I exclude from MRR?

Exclude anything that does not recur: one-off setup or onboarding fees, professional services, and usage spikes that will not repeat. Include only the steady subscription revenue, with annual contracts divided by twelve to get their monthly contribution.

How do I grow MRR?

By adding new customers, increasing average revenue per account through upsells and price rises, and reducing churn so you keep more of the revenue you have. Tracking new, expansion, contraction and churned MRR separately shows which lever is moving your total.

MRR Growth Rate Calculator

What is a good MRR growth rate?

It depends on your stage and size. Early companies on a small base often post very high percentages, while larger firms growing steadily at single digits each month can still be excellent. Compare your rate against your own past months and similar businesses rather than one fixed target.

Should MRR include one-off fees?

No. MRR is meant to capture recurring subscription revenue only, so setup fees, once-off services and other non-recurring charges should be left out. Keeping the same rule each period makes your growth rate reliable.

How do I improve my MRR growth rate?

You can grow MRR by winning new customers, expanding existing accounts through upgrades and add-ons, and reducing churn and downgrades. Raising prices on new or renewing plans also lifts MRR. Track each driver so you know what is moving the number.

MRR per Customer Calculator

Is MRR per customer the same as ARPA?

Yes. MRR per customer is the same idea as average revenue per account, usually shortened to ARPA. Some teams call it ARPU, average revenue per user, when they count users rather than accounts.

Which customers should I count?

Count only active, paying customers. Leave out free users and trials, since including them drags the average down and hides your real pricing. Be consistent about the definition every period.

Why is my ARPA misleading sometimes?

Because it is an average, a few very large accounts can pull it up and hide a long tail of small ones. Looking at ARPA by segment or plan gives a clearer picture. Pair it with median revenue per customer where you can.

Net New ARR Calculator

What is net new ARR?

Net new ARR is the real change in your annual recurring revenue over a period. It adds new and expansion ARR, then subtracts churned and contraction ARR. The result shows how much recurring revenue you genuinely added rather than just gross sales.

Why subtract contraction and churn?

New and expansion ARR alone overstate growth because they ignore customers leaving or shrinking. Subtracting churned and contraction ARR gives a net figure that reflects what actually stuck. This is the number boards and investors care about.

What period should I use?

Use a consistent period such as a month or a quarter, and measure all four inputs over that same window. Mixing periods makes the result meaningless. Many SaaS teams report net new ARR each quarter alongside the underlying movements.

Net Profit Calculator

What is the difference between net profit and gross profit?

Gross profit only subtracts the direct cost of goods sold from revenue. Net profit subtracts all expenses, including overheads, interest, and tax. Net profit is your true bottom line.

Should expenses include tax?

That is up to you. If you want net profit after tax, include your income tax in total expenses. If you want profit before tax, leave tax out and treat the result as pre-tax profit.

Why is my net profit negative?

A negative net profit means expenses are higher than revenue, so the business made a loss for the period. Review your expense list, look for rising costs, and check whether your prices and sales volume are high enough.

Net Profit Margin Calculator

What is a good net profit margin?

It depends heavily on the industry. Low margin sectors like supermarkets may sit in the low single digits while software firms can be much higher. Compare against similar businesses and focus on the trend.

Should the net profit be before or after tax?

Either works as long as you are consistent. If your net profit is after tax, the margin is an after tax margin. If it is before tax, treat the result as a pre-tax margin.

How is net margin different from gross margin?

Gross margin only accounts for direct costs of goods sold. Net margin accounts for all expenses, so it is always equal to or lower than the gross margin for the same business.

New MRR Calculator

What is new MRR?

New MRR is the monthly recurring revenue added by brand new customers in a period. It is the new customer count multiplied by the average revenue per account. It excludes expansion, reactivation and existing accounts.

What is ARPA?

ARPA is average revenue per account, the typical monthly recurring revenue one customer pays. Use a blended figure across the plans your new customers actually buy. It keeps the new MRR result grounded in reality.

Why annualise new MRR?

Annualising multiplies monthly new MRR by twelve to show the run rate the new cohort adds over a year. It makes the impact easier to compare with annual targets. It assumes those customers stay for the full period.

NPV Calculator

What is the NPV Calculator?

Calculate the Net Present Value (NPV) of any investment or project. Enter your discount rate and expected cash flows to determine whether the investment creates or destroys value at your required return.

Is the NPV Calculator free to use?

Yes. The NPV Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the NPV Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Operating Cash Flow Calculator

What is operating cash flow?

Operating cash flow is the cash a business generates from its normal trading activities. Using the indirect method it starts from net income, adds back non cash charges, and adjusts for changes in working capital. It shows whether operations fund themselves.

Why add back depreciation and amortisation?

Depreciation and amortisation reduce reported profit but no cash actually leaves the business when they are recorded. They are accounting allocations of past spending. Adding them back converts profit closer to a cash basis.

How does working capital affect the result?

An increase in working capital, such as more inventory or unpaid invoices, ties up cash and reduces operating cash flow. A decrease frees cash up and increases it. This calculator treats the input as the increase over the period.

Operating Margin Calculator

What is a good operating margin?

It depends on the industry. Capital light services often run high operating margins while low margin sectors such as retail run much thinner. Compare against similar businesses and watch the trend over time.

How is operating margin different from net margin?

Operating margin measures profit before interest and tax against revenue. Net margin measures profit after interest and tax. Operating margin focuses purely on how the core business trades.

Why does operating margin matter to lenders?

It shows how well the core business performs regardless of how much debt it carries. Because interest is excluded, lenders can compare the underlying trading strength of different borrowers more fairly.

Operating Profit Calculator

What is the difference between operating profit and net profit?

Operating profit is revenue less cost of goods sold and operating expenses, before interest and tax. Net profit goes further and also deducts interest and tax. Operating profit isolates how the core business trades.

Is operating profit the same as EBIT?

In most cases yes. EBIT means earnings before interest and tax, which is what operating profit measures. Small differences can arise if a business has one off items outside normal operations.

What should operating expenses include?

Operating expenses are the running costs of the business such as rent, wages, marketing, utilities, insurance, and depreciation. They should not include interest on debt or income tax, which sit below operating profit.

Payroll Cost Calculator

What is the employer KiwiSaver rate?

The minimum compulsory employer contribution is 3.5 percent of an employee's gross pay from 1 April 2026 for those enrolled in KiwiSaver. Some employers choose to contribute more. Employer superannuation contribution tax, or ESCT, applies to these contributions.

Why include holiday pay?

Employees in New Zealand are entitled to four weeks of paid annual leave, which is a real cost to the business. Estimating it at around 8 percent of gross earnings spreads that cost across the year. It is part of the true cost of employing someone.

Does this cover all employer costs?

No. It covers the main payroll on-costs of KiwiSaver, ACC and holiday pay on top of gross pay. Other costs such as recruitment, training, equipment and software are extra. Use the total as a planning estimate, not a final figure.

Payroll Error Correction Calculator NZ 2026

Can an employer just fix an underpayment in the next pay run?

Usually yes, and it is normally the right thing to do. Arrears are taxed in the pay period they are paid, not the period they relate to, so the PAYE is worked out on the pay that includes them. What matters is that the correction carries everything that should have ridden on the original pay: employer KiwiSaver, the ACC work levy, and holiday pay if the shortfall changes gross earnings used in leave calculations.

Does an underpayment affect holiday pay as well?

Often, and it is the part most corrections forget. Average weekly earnings is gross earnings over the last 12 months divided by 52, so if gross earnings were understated then every annual holiday paid in that period was calculated on a number that was too low. Correcting only the wages leaves a second, smaller underpayment behind in the leave that was already taken.

Can an employer recover an overpayment?

Only in narrow circumstances. Deductions from wages generally need the employee's written consent, and the Wages Protection Act allows recovery of an overpayment without consent only where the employee was unavailable to work and specific notice conditions were met. In practice most overpayment recovery is by agreement, so ask rather than deduct.

Payroll Giving Calculator NZ

What is payroll giving?

Payroll giving lets you donate to approved donee organisations straight from your pay. You receive an immediate tax credit of a third of the donation in the same pay, rather than waiting to claim it at the end of the year.

How much does a payroll donation actually cost me?

Because you get a 33.33% tax credit on the spot, a $30 donation reduces your take-home by only about $20. The charity still receives the full $30; the credit covers the other third.

Is payroll giving better than claiming later?

The credit rate is the same (33.33%), but payroll giving gives it to you immediately each pay rather than as a refund after the tax year, and there is no need to keep receipts or file a claim.

Price Elasticity of Demand Calculator

What is the Price Elasticity of Demand Calculator?

Calculate price elasticity of demand using the midpoint method. Enter old and new quantity and price to get the PED coefficient, elasticity classification, and a full step-by-step calculation.

Is the Price Elasticity of Demand Calculator free to use?

Yes. The Price Elasticity of Demand Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Price Elasticity of Demand Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Price Elasticity of Supply Calculator

What is the Price Elasticity of Supply Calculator?

Calculate price elasticity of supply using the midpoint method. Enter old and new supply quantity and price to get the PES coefficient, elasticity classification, and a full step-by-step workthrough.

Is the Price Elasticity of Supply Calculator free to use?

Yes. The Price Elasticity of Supply Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Price Elasticity of Supply Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Profit Margin Calculator NZ 2026

What is the Profit Margin Calculator NZ 2026?

Calculate gross profit margin, nominal profit, cost ratio, and profit ratio for any product or service. Enter the cost price and selling price for an instant margin breakdown.

Is the Profit Margin Calculator NZ 2026 free to use?

Yes. The Profit Margin Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Profit Margin Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Profit-Sharing Distribution Calculator

How are the shares worked out?

Each participant's weight is divided by the total of all weights to get a fraction, and that fraction is multiplied by the pool. The percentages always add up to one hundred. Larger weights receive larger dollar shares.

What can I use as the weight?

Anything consistent across participants, such as ownership percentage, hours worked, sales generated, or scheme points. The actual scale does not matter because the tool works on proportions. Just keep the same unit for everyone.

Usually yes. Profit shares paid to employees are generally taxable income and may need PAYE deducted, while partnership distributions are taxed in each partner's hands. Confirm the correct treatment with your accountant.

Reactivation MRR Calculator

What is reactivation MRR?

Reactivation MRR is recurring revenue recovered from customers who had previously churned and then returned to paying again. It is separate from new MRR and expansion MRR. It reflects the success of your win back efforts.

How is it calculated?

Reactivation MRR is the number of reactivated customers multiplied by the average revenue per account. Annualising multiplies that monthly figure by twelve. Use a blended ARPA that matches what returning customers actually pay.

Why track reactivation separately?

Reactivated customers are neither brand new nor existing active accounts, so giving them their own bucket keeps your MRR movements accurate. It also lets you measure how well win back campaigns perform. Clean categories make net new MRR easier to reconcile.

Recruitment Agency Fee vs In House Calculator NZ 2026

What do recruitment agencies charge in New Zealand?

Contingency recruitment is usually charged as a percentage of the first year salary, commonly in the mid teens to low twenties depending on the role and how hard it is to fill. Executive search is normally retained and charged in stages. The percentage is the headline, but what matters for a comparison is the dollar figure it produces against the loaded cost of running the process yourself.

What should I count as the in house cost of hiring?

Advertising, any assessment or background checking, and the hours your own people spend. The hours are the part that usually goes uncounted: shortlisting, interviewing, reference checking and internal debriefs add up quickly, and manager time is expensive. Cost those hours at the loaded rate of the people spending them, not at their base salary.

Is an agency ever the cheaper option?

On pure cost, rarely for a straightforward role that attracts good applicants. It becomes the better option when the market is thin, when the role is confidential, when your own people simply do not have the hours, or when a bad hire would be very expensive and the agency's screening genuinely reduces that risk. This calculator gives you the money side, which is one input rather than the whole decision.

Revenue Churn Calculator

What is revenue churn?

Revenue churn is the rate at which recurring revenue is lost, through cancellations and downgrades, as a share of the revenue you started with. It counts lost dollars rather than lost customers, which matters because customers differ in value.

What is the difference between revenue and customer churn?

Customer churn counts the proportion of customers who leave, while revenue churn counts the proportion of recurring revenue lost. Losing one large customer hits revenue churn hard but customer churn little, so revenue churn better reflects the financial impact.

Why annualise the churn rate?

Annualising shows the yearly drag of a monthly loss. Because the loss compounds month on month, the annual figure is higher than twelve times the monthly rate. It helps you see how much revenue the base would shed over a year at the current pace.

Revenue per Employee Calculator

How is revenue per employee calculated?

Divide total revenue for a period by the number of employees over that period. For example, $4,800,000 across 32 staff is $150,000 per employee. It is an average across the whole team.

Should I use full time equivalents?

Yes, where you can. Counting full time equivalents stops part time and casual staff from distorting the figure. Using a consistent basis makes period to period and peer comparisons meaningful.

What is a good revenue per employee figure?

It depends heavily on the industry. Software and capital light businesses run very high, while labour intensive services run lower. Compare against similar firms and watch your own trend rather than a universal target.

Revenue Recognition Calculator

What is straight line revenue recognition?

Straight line recognition spreads a contract value evenly across its term, recognising the same amount each month. It suits subscriptions where service is delivered steadily over time. The monthly amount is the contract value divided by the term in months.

How do I find revenue recognised to date?

Divide the contract value by the term in months to get the monthly amount, then multiply by the months elapsed. For a $36,000 contract over 36 months, that is $1,000 a month, so 10 months elapsed gives $10,000 recognised. The rest remains to be recognised.

How does this relate to deferred revenue?

The amount not yet recognised is your deferred revenue, the liability for service still owed. Recognised revenue and deferred revenue always add back to the total contract value. As months pass, value moves from deferred into recognised.

ROI Calculator

What is the ROI Calculator?

Calculate return on investment percentage, total ROI amount, and annual yield for any asset. Enter original investment value, current value, and years held for an instant performance breakdown.

Is the ROI Calculator free to use?

Yes. The ROI Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the ROI Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

SaaS Billings Calculator

What are SaaS billings?

Billings are the total amount you invoice customers in a period. They are calculated as recognised revenue plus the change in deferred revenue. Billings reflect invoicing and cash timing rather than earned revenue alone.

Why add the change in deferred revenue?

Deferred revenue is billed money you have not yet earned, so a rising balance means you invoiced more than you recognised. Adding the change back reveals the full amount billed in the period. A falling balance reduces billings below revenue.

Can billings be higher than revenue?

Yes. When customers pay annually up front, deferred revenue grows and billings exceed recognised revenue. When those balances unwind, billings can fall below revenue. The two rarely match exactly in a subscription business.

SaaS Bookings Calculator

What are SaaS bookings?

Bookings are the total value of contracts signed in a period, covering new business, renewals and expansion. They are recorded when the deal is signed, not when it is billed or recognised. Bookings are a forward looking measure of demand.

How are bookings different from revenue?

Bookings capture the value committed when a contract is signed, while revenue is recognised over time as the service is delivered. Bookings usually lead revenue, so a strong bookings period flows into higher revenue later. Tracking both shows momentum and delivery.

Should renewals count as bookings?

Yes, committed renewals are part of bookings because they represent contract value signed in the period. It helps to keep new, renewal and expansion as separate lines. That way you can see how much growth comes from new logos versus the existing base.

SaaS Gross Margin Calculator

What counts as cost of goods sold for SaaS?

The direct costs of delivering the service: cloud hosting and infrastructure, customer support, third-party software embedded in the product, payment processing, and the cost of services delivered to customers. It excludes sales, marketing and product development, which sit below gross profit.

What is a good SaaS gross margin?

Typically 70 to 80 percent, sometimes higher. Software's low cost to serve an additional customer gives it high gross margins. A margin well below this range suggests heavy hosting or support costs that will cap overall profitability.

Why does gross margin matter for other metrics?

Gross margin determines how much of each revenue dollar is real profit available to fund growth. Lifetime value and payback calculations use gross margin, not revenue, so that they count profit. A higher margin lifts lifetime value and shortens payback.

SaaS Magic Number Calculator

What is a good SaaS magic number?

A magic number of 1.0 or higher generally signals efficient growth where you can confidently invest more in sales and marketing. Between 0.75 and 1.0 is healthy but worth scaling carefully. Below 0.75 usually means the go-to-market motion needs work before adding spend.

Why use the prior quarter's spend?

There is a lag between spending on sales and marketing and the revenue it produces. Comparing this quarter's net new ARR to last quarter's spend reflects that delay. It gives a fairer picture of how that earlier investment converted into recurring revenue.

Should I use gross or net new ARR?

Use net new ARR, which subtracts churn and contraction from your new and expansion revenue. Gross bookings overstate growth because they ignore customers you lost. The net figure shows the real change in recurring revenue from your spend.

SaaS Pricing & MRR Calculator NZ 2026

What is MRR and ARR?

Monthly recurring revenue (MRR) is the predictable subscription revenue you earn each month, the price times the number of customers. Annual recurring revenue (ARR) is twelve times the MRR. They are the headline measures of a subscription business's size and growth.

How does churn affect customer value?

Churn determines how long the average customer stays: at 3 percent monthly churn the average lifetime is about 33 months, while at 2 percent it stretches to 50. Because lifetime value depends on that duration, even small reductions in churn raise customer value significantly.

Should I cut churn or raise prices?

Both help, but reducing churn often has a bigger and more durable effect because it multiplies the lifetime of every customer. Use this calculator to model each lever and see which moves your MRR and lifetime value more for your business.

SaaS Quick Ratio Calculator

What is the SaaS Quick Ratio?

It is the ratio of recurring revenue gained to recurring revenue lost: new plus expansion MRR divided by churned plus contraction MRR. It measures how efficiently a business grows, showing how many dollars of growth it generates for each dollar lost.

What is a good SaaS Quick Ratio?

A ratio of four or above is generally considered healthy, efficient growth. Around one means the business is barely growing, gaining about as much as it loses, and below one means it is shrinking. Higher ratios indicate growth built on a well-retained base.

Why is it useful?

Because it captures both growth and losses in a single number, it exposes businesses that look fast-growing but are leaking nearly as much revenue as they add. A high headline growth rate with a low Quick Ratio is a warning that churn is undermining the growth.

SaaS Win Rate Calculator

What counts as an opportunity in win rate?

An opportunity is a qualified deal that reached a clear outcome, either won or lost, in the period. Deals still in progress should not be counted, because they have no result yet. Including open deals understates your true win rate.

What is a good SaaS win rate?

It varies widely by market, deal size and lead source, so there is no universal target. Many teams sit somewhere between 20 and 40 percent on qualified opportunities. The more useful goal is a steady or improving trend for your own segments over time.

Why segment my win rate?

A single blended number can hide a weak channel or a standout rep. Breaking win rate down by lead source, deal size or salesperson shows where you win easily and where you struggle. That lets you focus effort and coaching where they have the most impact.

Sales Cycle Length Calculator

How do I measure the days for each deal?

Count the days from a consistent start point, such as when a lead becomes qualified, to the day the deal is signed. Add those days together across every closed deal to get the total. Using the same start point for every deal keeps the average fair.

Why does my average look longer than most deals?

A few very long deals can pull the average up, even when most deals close quickly. That is why the mean alone can mislead. Looking at the median alongside the average gives you a more honest sense of a typical deal.

How does cycle length help forecasting?

If you know it takes 45 days on average to close, you can estimate when today's leads will become revenue. That lets you map current pipeline activity to future bookings. It also flags deals that have stalled well past the normal cycle.

Sales Efficiency Calculator

How is this different from the magic number?

The classic SaaS magic number compares new ARR to the prior period spend to allow for a lag. This calculator uses a simpler same period gross version, new ARR divided by current spend. Both measure how efficiently spend turns into recurring revenue.

What ratio should I aim for?

As a rough guide, above one is generally healthy and means you added more than a dollar of new ARR per dollar spent. Around 0.7 to 1 is often seen as acceptable, while well below that suggests acquisition is getting expensive. Context and stage matter.

What spend should I include?

Include the full cost of sales and marketing for the period, salaries, commissions, software and program costs, not only advertising. Leaving costs out overstates efficiency. Be consistent every period.

Sales Tax Calculator

How do I remove GST from a total?

Divide the GST inclusive total by 1.15 to find the net amount, then subtract that from the total to get the GST. For a $230 total the net is $200 and the GST is $30. The extract mode does this automatically.

What rate should I use?

New Zealand GST is 15 percent, which is the default here. You can change the rate to model other taxes or a different jurisdiction. Always check the rate that applied on the date of the transaction.

Is the tax the same when adding and removing?

No, because adding works on the net figure and removing works on the gross figure. Adding 15 percent to $200 gives $30, while removing 15 percent from $200 gives about $26.09. Choose the mode that matches your starting amount.

Minor Dwelling ROI Calculator NZ

Is building a granny flat worth it?

It depends on the build cost and the rent it earns. A minor dwelling can add rental income or house family, and this calculator shows the yield and payback so you can judge whether the return stacks up.

What return does a minor dwelling give?

The return is the net rent, rent less running costs, as a percentage of the build cost. The payback period is the build cost divided by the annual net rent.

What costs come with a second dwelling?

Beyond the build, there are rates, insurance, maintenance and any management, plus the tax on rental income. Consents and connections can add to the build cost, so budget carefully.

Cashflow Forecast Calculator NZ 2026

Why forecast cash flow and not just profit?

A business can be profitable on paper yet run out of cash because customers pay late, stock ties up money, or expenses fall due before revenue arrives. A cash-flow forecast tracks the actual bank balance month by month, which is what keeps a business alive.

What does the lowest cash point tell me?

It is the smallest your balance gets during the period, even if you end up healthy. That dip is when a cash crisis can strike, so it tells you how big an overdraft or buffer you need to get through the lean months.

What does this forecast leave out?

It assumes steady growth and even monthly expenses, and ignores GST and tax payment timing, seasonal swings, and one-off costs. It is a quick planning model; for decisions, build a detailed monthly forecast with your accountant that captures those factors.

Support Cost per Customer Calculator

What is support cost per customer?

It is your total support cost for a period divided by the number of customers you served. It shows the average cost to serve each account. Lower is generally better if quality holds.

What costs should I include?

Include support salaries, tooling, any outsourced support and a fair share of overhead. Be consistent about what you include each period. Matching the cost and customer time frames keeps the figure accurate.

How can I reduce it?

Improve documentation and self-service so fewer customers need to contact you. Fix common product issues that drive tickets. Automation and better onboarding usually lower the cost to serve over time.

Support Tickets per Customer

What is tickets per customer?

It is the total support tickets in a period divided by the number of customers in that period. It shows how often, on average, each customer contacts support. A lower figure usually means less friction.

Why is my contact rate rising?

Common causes are confusing features, a recent change, or weak onboarding and documentation. A spike often follows a release. Investigate the top ticket topics to find the driver.

How do I lower tickets per customer?

Improve self-service content and fix the issues behind the most common tickets. Clearer onboarding reduces early confusion. Less friction usually means fewer contacts and lower support cost.

True Cost of an Employee Calculator NZ 2026

What does an employee really cost beyond salary?

On top of gross salary, an employer usually pays compulsory KiwiSaver of at least 3.5 percent, the ACC work levy set by industry, and overheads such as equipment, software, workspace, recruitment and training. Paid leave and public holidays also reduce the hours actually worked, which lifts the real cost per productive hour.

Is employer KiwiSaver on top of salary?

Employer KiwiSaver contributions are usually paid on top of gross salary at a minimum of 3.5 percent, unless you have agreed a total remuneration package. Employer contributions are subject to ESCT, which is deducted from the contribution and paid to Inland Revenue, but the cash cost to the employer is the gross contribution.

What is an on-cost loading?

On-costs are the extra costs of employment above salary, expressed as a percentage of salary. A loading of around 8 to 20 percent is common once KiwiSaver, ACC and overheads are included. This calculator shows your loading and the resulting cost per hour worked and per productive hour.

WACC Calculator

What is the WACC Calculator?

Calculate the Weighted Average Cost of Capital (WACC) for any business. Enter debt, equity, interest expense, tax rate, and beta to get total capital, debt and equity weights, cost of each, and WACC.

Is the WACC Calculator free to use?

Yes. The WACC Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the WACC Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Working Capital Calculator

What is working capital?

Working capital is your current assets minus your current liabilities. It measures the short term funds available to run the business after near term debts are met. Positive working capital usually points to healthy liquidity.

What is a good current ratio?

Many businesses aim for a current ratio between about 1.5 and 2, but the right level depends on your industry and how quickly your assets turn into cash. A ratio below 1 can signal liquidity pressure, while a very high ratio may mean idle cash or slow moving stock.

Are current assets and liabilities always within a year?

Yes, the word current refers to items expected to be received or paid within twelve months. Longer term assets and debts sit outside this calculation. Classifying items correctly is essential for a meaningful result.