Math plays a big part in everyday business. Business math isn't isolated to someone in a suit. It's important for everyone to have a strong understanding of math calculations to ensure you are going to succeed in your career. Running a successful business, you need to know how to calculate your revenue, costs and ensuing profitability. If you are borrowing money, or loaning money, understanding how to calculate interest is an asset. And we can't forget all of the math associated with real estate.
When I think of business, I think of money. The whole point of a business is to earn money for your product or service. In the simplest terms, the money you bring in is revenue, the money you spend is your costs, and the difference between the two is profit. Profit is key. You want a lot of that. Understanding how to calculate profit margin, or profit markup, can be important to any business owner, or employee.
I have always been told that interest is a good thing. As long as you're the one earning interest. This day in age, it's difficult to imagine a single day that I don't have to consider interest. It's involved with loans, credit cards, bills, calculating a return on investments, and even your every-day bank accounts. If you've ever heard of the time value of money, that is where interest comes from. Interest is a charge for the use of someone else's money. It's usually a percentage of the original amount of money that is being used. So, as I said before, interest is good, if you're earning it.
Real estate is a business market that heavily involves math. You have the revenue, cost and profits of your transactions, as well as percentages for the commissions, cost of a mortgage, the math used in taxes and capital gains, as well as a lot of geometry involved in the areas and rates associated with property size and cost-per-square foot. If you've ever purchased a home, or are looking into purchasing a home, you need to be aware of the calculations involved. Having an understanding of the math associated with the real estate market could end up paying off in actual dollars and cents later on.
So,whether you are trying to find the profit associated with a sale, or you need to calculate the monthly mortgage payment for a new house, online calculators can be used to help you with your business math needs. Feel free to browse some of the online business calculators found on this site, and if you have a request for a one you don't see, feel free to contact us with your online calculator idea.