Business savings calculator

A business savings calculator is a tool that allows you to estimate how much money your business can save over a certain period of time by making specific changes or improvements.

Page written by AI. Reviewed internally on May 20, 2024.

Calculators
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This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

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How to calculate business savings potential

  1. Identify the current costs: Start by listing the expenses you want to analyse. This could include things like operational costs, overhead expenses, energy bills, or any other area where you’re considering potential savings.

  2. Determine the potential savings: For each expense category, determine how much you could potentially save by implementing changes. This could be through cost-cutting measures, process optimisation, or other strategies. This will involve some research or estimation.

  3. Calculate total potential savings: Add up the potential savings from all the expense categories to find the total potential savings.

  4. Specify the time period: Decide on the time period over which you want to calculate the savings. It could be a month, a quarter, a year, etc.

  5. Calculate annualised savings: If your time period is shorter than a year, you’ll need to annualise the savings. For example, if you’re calculating savings for a quarter, multiply the total potential savings by 4 to get an annual estimate.

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