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Store Expansion Calculator

Can you afford to open a second location or expand your store? Estimate payback, added profit, and expansion risk.

Decision support

Interpretation

Expansion adds about $6,450/month in profit after new rent, labor, utilities, and other costs. Current location brings in $42,000/mo revenue and $6,800/mo profit.

Recommendation

Expansion may be risky because setup cost or added monthly expenses could strain cash. Review revenue assumptions and financing before committing.

Assumptions

Additional revenue is estimated. Setup costs may exceed expectations. This does not include taxes, financing, permits, or legal costs.

Detailed results

Added monthly profit ($)
6,450
Payback period (months)
6.98
Payback summary
6.98 months
Cash after setup ($)
10,000
Break-even additional revenue ($/mo)
21,550
Expansion risk level
Medium

Can I afford to open another location or expand my store? This business expansion calculator estimates added monthly profit, payback period on setup costs, cash after opening, and whether expansion looks manageable or risky.

How to use this calculator

  1. Enter current monthly revenue and profit from your existing location.
  2. Enter expansion setup cost and added monthly rent, labor, and utilities.
  3. Enter expected additional revenue and other monthly costs for the new space.
  4. Enter cash available and review payback period and expansion risk.

Formula

Added monthly profit = Additional revenue − Additional costs − Added rent − Added labor − Added utilities. Payback period = Setup cost ÷ Added monthly profit.

Example

A $45,000 setup with $12,350 in added monthly fixed costs and $28,000 in new revenue may add modest monthly profit — payback depends on how much money is left after rent, labor, and product costs.

Frequently asked questions

What setup costs should I include?
Include build-out, equipment, deposits, initial inventory, signage, and other one-time costs to open the new space.
Does this include financing?
No. Enter cash available and costs you expect to pay. Financing would change monthly cash flow but is not modeled here.

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