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

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## 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

## 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