Formula
Formulas
Formulas resources — 25 formulas for solo AI founders and bootstrappers: pricing, runway, stack cost, hiring, and growth decisions.
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Profitability
Break Even Formula
Master the Break-Even Formula to determine the exact sales volume needed to cover all costs and achieve profitability. Essential for business planning.
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SaaS Metrics
Business Valuation Formula (Earnings x Multiple)
The business valuation formula multiplies normalized earnings (SDE or EBITDA) by an industry multiple. See how to set the multiple and bracket the value range.
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SaaS Metrics
CAC Formula: How to Calculate Customer Acquisition Cost
The CAC formula divides sales and marketing spend by new customers. See how to calculate customer acquisition cost, with a worked example and variations.
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Unit Economics
CAC Payback Formula
Master the CAC Payback Formula to understand how quickly your business recoups customer acquisition costs, important for evaluating marketing efficiency.
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Operations
Cash Conversion Cycle Formula (CCC) Explained
The cash conversion cycle formula is DIO + DSO - DPO. See each component, a worked example, and how to shorten the cycle to free up working capital.
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SaaS Metrics
Churn Rate Formula: How to Calculate It
The churn rate formula: customers lost divided by starting customers, times 100. See the calculation, variables, a worked SaaS example, and variations.
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Distributed Teams
Commute Savings Formula
Uncover annual commute cost savings for distributed teams. This formula helps measure daily expenses and working days, highlighting the substantial.
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SaaS Metrics
Customer Lifetime Value (LTV) Formula
The customer lifetime value formula multiplies average purchase value, frequency, and lifespan. Learn to calculate LTV and pressure-test it against churn.
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Hiring Decisions
Employee Cost Formula
Discover the 'Fully Loaded Employee Cost' formula to accurately budget for new hires. Understand salary, taxes, benefits, and overhead to make informed.
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Freelancing
Hourly To Salary Formula
Convert your hourly freelance rate into an equivalent annual salary with this essential formula. Understand how to factor in your time and value.
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Operations
Inventory Turnover Formula
Learn the Inventory Turnover formula to assess how efficiently your business manages its stock. This key metric reveals how quickly inventory is sold.
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Freelancing
Invoice Late Fee Formula
Master the Invoice Late Fee Formula to calculate overdue penalties for freelancing clients. Protect your cash flow and encourage prompt payments.
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Unit Economics
LTV CAC Ratio Formula
Understand the LTV CAC Ratio formula, a unit-economics metric. Learn how to calculate customer lifetime value against acquisition cost to assess business.
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Pricing Strategy
Markup Formula: How to Calculate Markup Percentage
Calculate markup percentage with the formula (Sale Price - Cost) / Cost x 100, see a worked example, and learn how markup differs from profit margin.
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Operations
Meeting Cost Formula
Uncover the true financial impact of your business meetings with the Meeting Cost Formula. Learn to calculate participant expenses, improve operational.
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SaaS Metrics
Nps Formula
Uncover customer loyalty insights with the NPS formula. Learn to calculate your Net Promoter Score, understand its variables, and boost your SaaS growth.
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Runway & Cash Planning
Payback Period Formula
Understand the Payback Period Formula to quickly assess investment recovery, important for managing your startup's financial runway at AI Biz Hub.
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Experimentation
Price Elasticity Formula
Uncover customer demand sensitivity to price changes with the Price Elasticity Formula. Essential for optimizing pricing strategies through data-driven.
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Pricing Strategy
Profit Margin Formula
Master the Profit Margin Formula to assess your business's profitability. Calculate net profit margin, interpret results, and use variations for strategic.
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Profitability
ROI Formula
Measure business profitability with the essential ROI formula. Learn to calculate Return on Investment, gauge financial success, and make smarter decisions.
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Pricing Strategy
SaaS Pricing Formula
The SaaS pricing calculator sets a monthly price floor from COGS, target gross margin, CAC, and payback window. See the formula and a worked example.
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Forecasting
Sales Forecast Formula: Calculate Projected Revenue
The sales forecast model compounds starting MRR by monthly growth and adds pipeline (opportunities x conversion x deal size). See the formula and a worked MRR projection.
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Freelancing
Scope Creep Formula
Understand and calculate the hidden costs of scope creep in your freelancing projects with this essential formula. Learn to measure its impact and protect.
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Runway & Cash Planning
Startup Runway Formula
Calculate your startup's financial survival time. Learn how to use Cash On Hand and Monthly Burn to predict runway, make strategic decisions, and secure.
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Unit Economics
Unit Economics Formula
Understand business profitability with the unit economics calculator. Estimate lifetime value from ARPU, gross margin, and lifespan, then compare it to CAC through the LTV:CAC ratio.
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