Frequently Asked Questions
Common questions about our calculators, how they work, and what the numbers mean.
Are SmallBizCalc tools really free?
Yes. All calculators on SmallBizCalc are free to use with no signup, no account creation, and no credit card required. There are no premium features or paywalled results. The site is funded by advertising.
Does SmallBizCalc store my financial data?
No. All calculations run entirely in your browser. The numbers you enter — revenue, costs, loan amounts, margins — never leave your device and are not sent to any server. When you close or refresh the page, the data is gone. Nothing is stored or tracked.
What is the difference between markup and margin?
Markup is calculated on cost: if something costs $80 and you add a 25% markup, you sell it for $100. Margin is calculated on selling price: that same $100 sale with $80 cost is a 20% margin. Both measure profitability, but they use different denominators. Markup % = (Price − Cost) ÷ Cost × 100. Margin % = (Price − Cost) ÷ Price × 100.
How accurate are the tax estimates in the calculators?
Tax estimates use current federal income tax brackets and the standard self-employment tax rate (15.3% on net self-employment income, with the employer-equivalent deduction applied). State income taxes are not included unless the tool explicitly asks for a state rate. For anything beyond rough estimates — especially for business tax planning — consult a tax professional or CPA.
What does break-even mean for a small business?
Break-even is the point where your total revenue equals your total costs — you're not making a profit yet, but you're not losing money either. Break-even analysis helps you understand how many units you need to sell (or how much revenue you need) before your business starts generating profit. It requires knowing your fixed costs (rent, salaries, insurance) and variable costs (materials, shipping) per unit.
Can I use these calculators for my tax return?
No. SmallBizCalc tools are for estimation and planning purposes only — they are not substitutes for tax preparation software or professional tax advice. The IRS requires specific schedules, forms, and calculations that go beyond what general calculators provide. Use these tools to understand your rough numbers; use a CPA or tax software for your actual return.
How is ROI different from profit margin?
Profit margin measures how much profit you make as a percentage of revenue. ROI (Return on Investment) measures how much you gained relative to what you invested. ROI is typically used to evaluate a specific decision or project — like buying equipment or running an ad campaign — rather than ongoing operations. ROI = (Net Gain − Investment Cost) ÷ Investment Cost × 100.
Why does my loan payment look different from what my bank quoted?
SmallBizCalc uses standard fixed-rate amortization math (equal monthly payments). Your bank's quote may differ because of: origination fees or closing costs rolled into the loan, variable interest rates, interest-only periods, balloon payments, or other non-standard loan structures. The calculator gives you a baseline for comparison, but always review your full loan agreement.