8.7
Sample Expense Calculation

Creative icon of a half brain half lightbulb representing ideas, creativity, knowledge, technology and the human mind. Learning Activity

Now that you’ve learned a little bit more about cash flow management and budgeting, you can start putting your own budget together. To start, use Table 1 to calculate your anticipated expenses:

Table 1. Sample Expense Calculation

Description Monthly Amount Annual Amount
Rent
Utilities
Phone & Internet
Office expenses (office supplies, mailing, copy expenses)
Computer and technology (work laptop, electronic storage, other IT expenses)
Business, short- and long-term disability and staff misappropriation insurance
Subscriptions
Alberta Lawyers Indemnity Association fees
Membership fees
Staff
Advertising
Float (for disbursements and other expenses)
Totals

The information in Table 1 Sample Expense Calculation will help you determine what you are going to charge. If you are billing based on an hourly rate, dividing your monthly fixed expenses by your hourly rate will give you the minimum number of hours you will need to bill to cover your fixed expenses. For example, if your monthly total expenses from Table 1 total $2,500, you will divide that amount by your hourly rate (for example, $250 per hour) resulting in the calculation shown in Table 2:

Table 2. Number of Billable Hours to Cover Fixed Expenses

Monthly fixed expense Hourly rate Number of billable hours
$2,500 $250 10

Therefore, you would need to bill a minimum of 10 hours each month just to cover your fixed expenses. 

If you would like to try a more detailed tool, you can download the Business Development Bank of Canada’s free cash flow calculator, which will help you forecast your business’s cash inflows and outflows over a 13 week/one quarter period. 

Last modified: Monday, 9 February 2026, 2:02 PM