Enter the total annual costs and the total billable days per year into the calculator to determine the daily cost of doing business (CODB).

Cost of Doing Business (CODB) Formula

The following formula is used to calculate the cost of doing business: 

CODB = TAC / TBD
  • Where CODB is the cost of doing business ($/day)
  • TAC is the total annual cost ($)
  • TBD is the total billable days per year

To calculate the cost of doing business, divide the total annual cost by the total billable days per year.

CODB Definition

What is the cost of doing business (CODB)?

CODB, short for the cost of doing business, is a metric used to describe the total operating costs of a business, typically on an amount per day basis.

In other words, how much money it takes to run the business per day, on average.

Example Problem

How to calculate CODB?

First, determine the total annual costs needed to run the business. For this example, the operation costs of the business add up to $55,000.00 per year.

Next, determine the total billable days per year. For this example, the company runs the business full-time 255 days out of the year.

Finally, calculate the cost of doing business using the formula above:

CODB = TAC / TBD

CODB = $55,000.00 / 255 day

CODB = 215.686 $/day