Calculation reference | Business Helper AI

Use supplied definitions, consistent units and explicit periods. These formulas support planning and review; they do not supply a business's accounting rules, tax rates, legal requirements or approval policy.

Show inputs and enough working for another person to check the result. If the calculation cannot be performed reliably with the available capabilities, provide the method and required inputs rather than an invented result.

Capacity and process

Workload hours = number of arrivals or tasks x average handling hours.
Usable capacity = scheduled capacity - leave - recurring non-task work - explicit contingency.
Load ratio = workload hours / usable capacity hours. A ratio below one does not guarantee a waiting-time target.
Elapsed time measures start to finish; touch time measures active work. Do not sum overlapping steps as if they were sequential.
Where a stable process and consistent units justify it, average work in progress = throughput rate x average elapsed time. State the assumptions before applying this relationship.

For variable service demand, compare peak periods and skill constraints. A simple average understates the consequences of variability and queues.

Pipeline and cohorts

Stage conversion = records from a defined entry cohort that reach the specified later stage / eligible records in that same cohort.
Win rate = wins / the explicitly defined set of decided opportunities. State whether no-decision outcomes are included.
Pipeline coverage = eligible open value / remaining target for the same measure and period.
Weighted pipeline = sum of opportunity value x an explicitly supported probability. This is an estimate, not committed revenue.
Forecast error = actual - forecast, using the same horizon and measure. For percentage error, state the denominator and treatment of zero.

Do not compare unrelated stage snapshots as if they were one cohort or count a shared opportunity twice in team totals.

Contribution, channel and pricing

Net sales = gross sales - discounts - returns and allowances under the chosen reporting definition.
Gross profit = net sales - cost of goods or services sold under the supplied cost policy.
Contribution = net sales - the costs treated as variable or attributable for the decision. Explain allocation rules.
Margin percentage = contribution or profit / the corresponding net sales base.
Markup percentage = profit / the stated cost base. Margin and markup have different denominators.
Break-even quantity = relevant fixed cost / contribution per unit, only when contribution per unit is positive and the assumptions fit.
Incremental channel value must include commissions, freight, returns, support burden, payment timing and displaced sales where relevant.

Use the same cost treatment when comparing channels or prices.

Cash and reconciliation

Closing cash = opening available cash + receipts - payments for the period.
Outstanding balance = opening balance + charges or additions - payments or reductions, adjusted for the supplied account convention.
A reconciliation explains the entire difference through supported items; an unexplained remainder stays visible.
Journal proposals must have equal total debits and credits within the relevant currency or approved conversion treatment.

Separate billed or recognized revenue from cash received. Do not count both a settlement total and its underlying receipts as separate cash inflows.

Inventory

Usable available quantity = usable on-hand quantity - quantities already committed under the business's definition.
Inventory position commonly includes usable on-hand plus confirmed on-order less outstanding demand; define the components before using it.
Demand during replenishment = demand rate x replenishment time, with consistent units.
Reorder point = expected demand during replenishment + explicitly justified safety stock.
Proposed order quantity must account for existing orders, minimums, pack sizes, storage, cash and supplier lead time.

Avoid subtracting the same commitment twice when combining availability and inventory-position methods. Stock not yet received is not available stock. Sales during stockouts may understate underlying demand.

People and pay preparation

Headcount bridge = opening headcount + eligible additions - eligible exits = closing headcount, with transfers treated consistently.
Turnover rate = eligible exits / the defined average population for the same period.
Pay calculations use approved time, rates and applicable rules supplied for the business. Do not invent overtime, deduction, benefit or tax rules.

Match employee populations and periods before comparing rates. Protect privacy when group sizes are too small for meaningful anonymous reporting.

Subscription businesses

Closing recurring revenue = opening recurring revenue + new + expansion - contraction - churn, after consistent treatment of other adjustments.
Gross revenue retention = (opening recurring revenue - contraction - churn) / opening recurring revenue.
Net revenue retention = (opening recurring revenue + expansion - contraction - churn) / opening recurring revenue.
Customer churn = lost eligible customers / opening eligible customers for a defined cohort and period.

Keep new customers out of retention denominators and distinguish recurring revenue from one-time items.

Investment and measured value

Simple return = (measured benefit - total relevant cost) / total relevant cost. State the period and whether benefit is cash or another measure.
Payback is the first period in which cumulative incremental net cash flow recovers the initial investment. Uneven flows require a schedule.
Net present value = sum of incremental net cash flow in period t / (1 + supplied discount rate)^t, including the initial outflow at period zero.
A calculated internal rate of return may be non-unique or misleading when cash flows change sign repeatedly; review the actual cash-flow pattern.
Recovered capacity = task volume x verified time saved per task, adjusted for new review or maintenance work.

Report recovered capacity separately from cash savings unless staffing or other spending actually changes. Avoid counting the same benefit twice. Include setup, training, review and ongoing maintenance in the comparison.

Sanity check

Check signs, units, rounding, duplicate records, date boundaries and denominators. Reconcile totals and inspect at least one small case with an independently calculable answer. Explain sensitivity to uncertain inputs.

Plain-text instructions

# Calculation reference

Use supplied definitions, consistent units and explicit periods. These formulas support planning and review; they do not supply a business's accounting rules, tax rates, legal requirements or approval policy.

Show inputs and enough working for another person to check the result. If the calculation cannot be performed reliably with the available capabilities, provide the method and required inputs rather than an invented result.

## Capacity and process

- Workload hours = number of arrivals or tasks x average handling hours.
- Usable capacity = scheduled capacity - leave - recurring non-task work - explicit contingency.
- Load ratio = workload hours / usable capacity hours. A ratio below one does not guarantee a waiting-time target.
- Elapsed time measures start to finish; touch time measures active work. Do not sum overlapping steps as if they were sequential.
- Where a stable process and consistent units justify it, average work in progress = throughput rate x average elapsed time. State the assumptions before applying this relationship.

For variable service demand, compare peak periods and skill constraints. A simple average understates the consequences of variability and queues.

## Pipeline and cohorts

- Stage conversion = records from a defined entry cohort that reach the specified later stage / eligible records in that same cohort.
- Win rate = wins / the explicitly defined set of decided opportunities. State whether no-decision outcomes are included.
- Pipeline coverage = eligible open value / remaining target for the same measure and period.
- Weighted pipeline = sum of opportunity value x an explicitly supported probability. This is an estimate, not committed revenue.
- Forecast error = actual - forecast, using the same horizon and measure. For percentage error, state the denominator and treatment of zero.

Do not compare unrelated stage snapshots as if they were one cohort or count a shared opportunity twice in team totals.

## Contribution, channel and pricing

- Net sales = gross sales - discounts - returns and allowances under the chosen reporting definition.
- Gross profit = net sales - cost of goods or services sold under the supplied cost policy.
- Contribution = net sales - the costs treated as variable or attributable for the decision. Explain allocation rules.
- Margin percentage = contribution or profit / the corresponding net sales base.
- Markup percentage = profit / the stated cost base. Margin and markup have different denominators.
- Break-even quantity = relevant fixed cost / contribution per unit, only when contribution per unit is positive and the assumptions fit.
- Incremental channel value must include commissions, freight, returns, support burden, payment timing and displaced sales where relevant.

Use the same cost treatment when comparing channels or prices.

## Cash and reconciliation

- Closing cash = opening available cash + receipts - payments for the period.
- Outstanding balance = opening balance + charges or additions - payments or reductions, adjusted for the supplied account convention.
- A reconciliation explains the entire difference through supported items; an unexplained remainder stays visible.
- Journal proposals must have equal total debits and credits within the relevant currency or approved conversion treatment.

Separate billed or recognized revenue from cash received. Do not count both a settlement total and its underlying receipts as separate cash inflows.

## Inventory

- Usable available quantity = usable on-hand quantity - quantities already committed under the business's definition.
- Inventory position commonly includes usable on-hand plus confirmed on-order less outstanding demand; define the components before using it.
- Demand during replenishment = demand rate x replenishment time, with consistent units.
- Reorder point = expected demand during replenishment + explicitly justified safety stock.
- Proposed order quantity must account for existing orders, minimums, pack sizes, storage, cash and supplier lead time.

Avoid subtracting the same commitment twice when combining availability and inventory-position methods. Stock not yet received is not available stock. Sales during stockouts may understate underlying demand.

## People and pay preparation

- Headcount bridge = opening headcount + eligible additions - eligible exits = closing headcount, with transfers treated consistently.
- Turnover rate = eligible exits / the defined average population for the same period.
- Pay calculations use approved time, rates and applicable rules supplied for the business. Do not invent overtime, deduction, benefit or tax rules.

Match employee populations and periods before comparing rates. Protect privacy when group sizes are too small for meaningful anonymous reporting.

## Subscription businesses

- Closing recurring revenue = opening recurring revenue + new + expansion - contraction - churn, after consistent treatment of other adjustments.
- Gross revenue retention = (opening recurring revenue - contraction - churn) / opening recurring revenue.
- Net revenue retention = (opening recurring revenue + expansion - contraction - churn) / opening recurring revenue.
- Customer churn = lost eligible customers / opening eligible customers for a defined cohort and period.

Keep new customers out of retention denominators and distinguish recurring revenue from one-time items.

## Investment and measured value

- Simple return = (measured benefit - total relevant cost) / total relevant cost. State the period and whether benefit is cash or another measure.
- Payback is the first period in which cumulative incremental net cash flow recovers the initial investment. Uneven flows require a schedule.
- Net present value = sum of incremental net cash flow in period t / (1 + supplied discount rate)^t, including the initial outflow at period zero.
- A calculated internal rate of return may be non-unique or misleading when cash flows change sign repeatedly; review the actual cash-flow pattern.
- Recovered capacity = task volume x verified time saved per task, adjusted for new review or maintenance work.

Report recovered capacity separately from cash savings unless staffing or other spending actually changes. Avoid counting the same benefit twice. Include setup, training, review and ongoing maintenance in the comparison.

## Sanity check

Check signs, units, rounding, duplicate records, date boundaries and denominators. Reconcile totals and inspect at least one small case with an independently calculable answer. Explain sensitivity to uncertain inputs.