Business Math Formulas (Speedy Study Guides)

Business Math Formulas (Speedy Study Guides): A Compact Companion for Quick, Accurate Decision-Making

In the dynamic world of business, numbers rule. Whether you’re calculating interest, analyzing profit margins, pricing products, managing payroll, or projecting revenue, business math is the bedrock of strategic decision-making. And when time is limited, accuracy is critical, and simplicity is valued, a Speedy Study Guide becomes a powerful tool.

Business Math Formulas (Speedy Study Guides) is designed for those who need fast access to the core formulas that drive financial and operational success. Packed with the most frequently used equations across business disciplines—finance, accounting, economics, statistics, and marketing—this guide serves students, small business owners, analysts, and executives alike.

Why Business Math Matters

In business, even small errors in calculation can lead to significant losses. Understanding and applying the right formula at the right time ensures:

• Profitable pricing

• Accurate forecasting

• Effective budgeting

• Informed investment decisions

• Legal compliance in payroll and tax

• Data-driven marketing insights

This guide makes it possible to quickly find, understand, and use essential formulas without flipping through dense textbooks or digging through search engines.

Who This Guide Is For

• High school and college students taking business math, accounting, finance, or economics courses

• Entrepreneurs and small business owners who manage operations, pricing, payroll, or inventory themselves

• Corporate professionals who work in accounting, finance, or business analysis

• MBA students preparing for exams or managing case studies

• Job seekers wanting to sharpen their practical math skills for interviews or assessments

This isn’t a comprehensive textbook—it’s a focused tool for practical use, perfect for daily reference or exam revision.

What You’ll Find Inside

This Speedy Study Guide is organized by key business disciplines. Each section contains the most-used formulas, explanations of variables, example problems, and shortcuts to boost speed and comprehension.

📈 1. Finance Formulas

Finance deals with the management of money, assets, investments, and credit. You’ll find formulas such as:

• Simple Interest (SI)
  $SI = P \times R \times T$
  Where:
  P = Principal, R = Interest Rate, T = Time

• Compound Interest (CI)
  $CI = P(1 + \frac{r}{n})^{nt} - P$

• Present Value (PV)
  $PV = \frac{FV}{(1 + r)^n}$

• Future Value (FV)
  $FV = PV \times (1 + r)^n$

• Net Present Value (NPV)
  $NPV = \sum \frac{R_t}{(1 + r)^t} - C_0$

• Internal Rate of Return (IRR)
  (Determined using NPV set to zero)

These formulas help evaluate investments, savings, and returns—critical for both business planning and personal financial literacy.

📊 2. Accounting Formulas

Accounting formulas are the backbone of financial statements and audits. Common formulas include:

• Accounting Equation
  $Assets = Liabilities + Equity$

• Net Income
  $Net Income = Revenue - Expenses$

• Gross Profit Margin
  $\text{Gross Margin} = \frac{\text{Revenue} - \text{COGS}}{\text{Revenue}} \times 100$

• Break-even Point
  $\text{Break-even} = \frac{\text{Fixed Costs}}{\text{Selling Price} - \text{Variable Costs}}$

• Return on Assets (ROA)
  $ROA = \frac{\text{Net Income}}{\text{Total Assets}}$

• Return on Equity (ROE)
  $ROE = \frac{\text{Net Income}}{\text{Shareholder’s Equity}}$

These formulas help assess a company’s financial health and operational performance.

📉 3. Economics Formulas

Economics deals with scarcity, choice, and the allocation of resources. In this section, you’ll find:

• Price Elasticity of Demand (PED)
  $PED = \frac{\%\ \text{Change in Quantity Demanded}}{\%\ \text{Change in Price}}$

• Total Revenue (TR)
  $TR = Price \times Quantity$

• Average Cost (AC)
  $AC = \frac{\text{Total Cost}}{\text{Quantity}}$

• Marginal Cost (MC)
  $MC = \frac{\Delta \text{Total Cost}}{\Delta \text{Output}}$

• GDP (Expenditure Approach)
  $GDP = C + I + G + (X - M)$

These formulas provide insight into market behavior, production efficiency, and economic performance.

📦 4. Business Operations & Inventory

Efficient operations require careful management of resources, time, and inventory. Useful formulas include:

• Inventory Turnover
  $\text{Inventory Turnover} = \frac{\text{COGS}}{\text{Average Inventory}}$

• Reorder Point
  $\text{Reorder Point} = \text{Lead Time} \times \text{Daily Usage}$

• Economic Order Quantity (EOQ)
  $EOQ = \sqrt{\frac{2DS}{H}}$
  Where: D = Demand, S = Setup cost, H = Holding cost

These help in controlling inventory levels and ensuring smooth business operations.

💵 5. Payroll and Tax

Mistakes in payroll and tax can be costly. Here are formulas to stay accurate:

• Gross Pay
  $\text{Gross Pay} = \text{Hours Worked} \times \text{Hourly Rate}$

• Net Pay
  $\text{Net Pay} = \text{Gross Pay} - \text{Deductions}$

• Taxable Income
  $\text{Taxable Income} = \text{Gross Income} - \text{Allowances and Deductions}$

• Sales Tax
  $\text{Sales Tax} = \text{Price} \times \text{Tax Rate}$

This section aids HR professionals, freelancers, and business owners.

📈 6. Marketing & Pricing

Marketing decisions often rely on data and ROI calculations. Included formulas are:

• Markup
  $\text{Markup} = \frac{\text{Selling Price} - \text{Cost Price}}{\text{Cost Price}} \times 100$

• Margin
  $\text{Margin} = \frac{\text{Selling Price} - \text{Cost}}{\text{Selling Price}} \times 100$

• Customer Acquisition Cost (CAC)
  $CAC = \frac{\text{Marketing Expenses}}{\text{New Customers Acquired}}$

• Return on Marketing Investment (ROMI)
  $ROMI = \frac{\text{Revenue from Campaign} - \text{Marketing Cost}}{\text{Marketing Cost}} \times 100$

These calculations support smarter pricing, customer targeting, and campaign measurement.

📐 7. Business Statistics

Business statistics support analysis and forecasting. Included formulas:

• Mean (Average)
  $\bar{x} = \frac{\sum x}{n}$

• Median
  (Middle value in ordered data set)

• Standard Deviation (σ)
  $\sigma = \sqrt{\frac{\sum (x - \bar{x})^2}{n}}$

• Probability (P)
  $P(E) = \frac{\text{Number of Favorable Outcomes}}{\text{Total Outcomes}}$

• Z-score
  $Z = \frac{X - \mu}{\sigma}$

Statistical understanding allows better forecasting, quality control, and business insight.

Why Use a Speedy Study Guide?

This guide isn’t just for test preparation—it’s designed to:

• Save time with quick access to verified formulas

• Reinforce memory through repetition and visual structure

• Support practical applications in real-world business scenarios

• Eliminate overwhelm by simplifying key concepts

• Encourage independent problem-solving with examples and explanations

Because of its portable and concise format, this Speedy Study Guide is perfect for exam cramming, boardroom meetings, or daily decision-making.

Tips for Getting the Most Out of This Guide

1. Use tabs or highlights to mark frequently used sections

2. Combine with practice problems to reinforce formula usage

3. Translate formulas into real-life cases for better understanding

4. Memorize core formulas, but keep the guide as backup

5. Review before meetings, exams, or financial planning sessions