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Tip: Regularly monitor these figures and adjust your pricing model or cost structure accordingly to maximize profitability.
As you estimate your business’s total operating costs, consider using our Absence Percentage Calculator to better manage workforce efficiency and absenteeism.
The Cost of Doing Business (CODB) is a key metric for any business, as it reflects the total expenses involved in running your company. By dividing the annual cost by billable days, you can get an accurate understanding of how much each day of business costs you. This helps identify if your business is priced correctly, and if not, adjustments can be made to ensure profitability.
Industry | Typical CODB per Day (INR) |
SaaS / Software | ₹3,000 – ₹10,000 |
E-commerce | ₹1,500 – ₹5,000 |
Healthcare | ₹2,500 – ₹8,000 |
Retail | ₹1,000 – ₹3,500 |
Manufacturing | ₹3,000 – ₹12,000 |
Note: Benchmarks vary depending on business model, product/service type, and operational scale. Always compare your CODB to your industry average and adjust your pricing and cost strategy accordingly.
Scenario:
Calculation:
Cost per Day=1,200,000/250=₹4,800
Interpretation:
The cost of doing business per day is ₹4,800, which means your business incurs ₹4,800 in costs each day it operates. This information helps you assess whether your daily revenue is sufficient to cover these expenses and generate profits.
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Answers to Frequently Asked Questions
It’s the total amount a company spends annually on operations, including both fixed and variable costs, excluding any direct revenue-generating activities.
It helps you understand your daily operational expenses and ensure your pricing and revenue models are sustainable.
Streamline operations, reduce overhead costs, optimize pricing, and improve cost-effectiveness in every department.
By monitoring your CODB and ensuring that your daily revenue exceeds your cost per day, you can ensure higher profit margins.
Calculate it annually for a broad overview but monitor it monthly to adjust your strategies as needed.