A business expense planner helps small business owners and freelancers see whether monthly revenue covers costs, and by how much. Separating costs into fixed (rent, salaries, same every month regardless of sales) and variable (raw material, marketing, scales with activity) is the first step to understanding your break-even point and where to cut when revenue dips.
Worked Example:
Monthly revenue = ₹3,00,000
Fixed costs = ₹1,40,000 (rent + salaries + utilities + fees)
Variable costs = ₹73,000 (raw material + marketing + logistics + misc)
Total costs = ₹2,13,000 → Profit = ₹87,000/month
Should I track business and personal expenses separately?▾
Yes, absolutely. Mixing personal and business finances creates tax complications and makes it hard to understand your true financial picture. Maintain separate bank accounts, credit cards, and expense records for business, this also makes GST filing and ITR filing much simpler.
What is a healthy fixed-to-variable cost ratio?▾
There's no universal number, but businesses with lower fixed costs relative to revenue are more resilient during slow months since they can scale variable costs down quickly. Service businesses often run higher fixed costs (salaries); trading/retail businesses often run higher variable costs (inventory).
How do I calculate my break-even point?▾
Break-even revenue = Fixed Costs ÷ (1 − Variable Cost as a fraction of revenue). For example, if fixed costs are ₹1,40,000/month and variable costs run at 25% of revenue, you need roughly ₹1,86,667/month in revenue just to break even.
What business expenses are tax-deductible in India?▾
Most ordinary business expenses, rent, salaries, raw material, marketing, professional fees, and business loan interest, are deductible against business income under the Income Tax Act. Keep proper invoices and records; personal expenses claimed as business expenses can trigger scrutiny during an assessment.