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