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Page written by Ian Hawkins. Last reviewed on March 11, 2026. Next review due April 1, 2027.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
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.
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.
Calculate total potential savings: Add up the potential savings from all the expense categories to find the total potential savings.
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.
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.
Calculating interest on a savings account involves understanding whether the interest is simple or compounded. Most business savings accounts use compound interest, which is calculated periodically and added to the principal.
Simple interest formula: Interest=P×r×t
Where:
The amount you should save each month depends on your business’s revenue, expenses, and financial goals. A good starting point is to aim for a percentage of your revenue. Many financial experts recommend saving at least 10-20% of your monthly revenue. However, this can vary based on your business needs and objectives.
Consistency is key when it comes to building your savings. Here are some tips:
By saving regularly and strategically, your business can build a solid financial foundation to support long-term success and stability.
Disclaimer: Swoop Finance Ltd (Swoop) helps Canadian firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop may receive a commission or finder’s fee for effecting such introductions. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions.
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