A-Level Business · Reference Pack
FREE
Calculation
Cheat Sheet
This resource was corrected on 13 August 2026. If you downloaded it before then, take this copy instead. What changed, and every other correction we have made, is on the corrections page.
All 26 calculations a Year 12 or Year 13 Business student needs, with worked examples using real UK businesses. AQA 7132, Edexcel 9BS0, OCR H431.
Written against the outgoing AQA 7132 and OCR H431, which run to summer 2027 exams. Both boards start new A-level Business specifications in September 2026, AQA 7138 and OCR H436, and this sheet has not yet been checked against them. Edexcel 9BS0 continues unchanged.
Section 1
Revenue, Costs & Profit
7 formulas · Theme 2 / Unit 3
Section 2
Margins & Ratios
6 formulas · Theme 2 / Unit 3
Section 3
Break-even & Contribution
4 formulas · Theme 2 / Unit 3
Section 4
Cash Flow & Working Capital
5 formulas · Theme 2 / Unit 3
Section 5
Investment Appraisal
4 formulas · Theme 3 / Unit 3
Bonus
Worked Examples
Real UK businesses · Greggs and JD Sports
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Section 1 · Revenue, Costs & Profit
The seven core formulas that underpin every other calculation in A-Level Business.
AQA: 3.5 Financial performance
Edexcel: Theme 2.2 / 2.3
OCR: Unit 3 Finance
Mark losses to avoid
Showing units in £ (or vice versa)
·
Mixing gross and operating profit
·
Forgetting to subtract interest in net profit
The Business School · Calculation Cheat Sheet
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Section 2 · Margins & Ratios
The six margin and ratio calculations examiners expect at A-Level.
AQA: 3.5 Financial performance
Edexcel: Theme 2.3 Managing finance
OCR: Unit 3 Finance
Mark losses to avoid
Forgetting × 100 to get a percentage
·
Using net assets instead of capital employed in ROCE
The Business School · Calculation Cheat Sheet
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Section 3 · Break-even & Contribution
Four formulas plus one worked example using a real UK SME.
AQA: 3.5 Financial performance
Edexcel: Theme 2.3
OCR: Unit 3
Worked example 1 · Bristol coffee van
A street-food coffee van has fixed costs of £2,800/month. Coffees sell at £3.50 with variable cost of £0.90.
Contribution per coffee = £3.50 − £0.90 = £2.60
Break-even = £2,800 ÷ £2.60 = 1,077 coffees per month
If actual sales are 1,500 coffees, MoS = 1,500 − 1,077 = 423 coffees (28%)
If the van wants £1,500 profit: target = (£2,800 + £1,500) ÷ £2.60 = 1,654 coffees
Mark losses to avoid
Mixing fixed costs and variable costs in the formula
·
Rounding break-even output downward (always round UP)
The Business School · Calculation Cheat Sheet
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Section 4 · Cash Flow & Working Capital
Five formulas covering liquidity and short-term financial management.
AQA: 3.5 / 3.7
Edexcel: Theme 2.3
OCR: Unit 3
Section 5 · Investment Appraisal
The Business School · Calculation Cheat Sheet
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Bonus · Worked Examples & Exam Technique
Real UK businesses applied to the calculations. The exam technique notes below are based on senior examiner reports.
Use this: homework, mock prep, revision
Time per example: 10 to 15 minutes
Worked example 2 · Greggs plc, Gross profit margin
Greggs plc reported revenue of £2,151.2m and gross profit of £1,322.1m in the 52 weeks to 27 December 2025.
GP margin = (£1,322.1m ÷ £2,151.2m) × 100 = 61.5%
Do not compare that 61.5% straight across to another retailer. It is high because of where Greggs draws the cost of sales line: cost of sales is the direct cost of making the food, while the cost of running the shops sits below it in distribution and selling costs (£1,036.3m). That is why operating profit is only £187.5m, an operating margin of 8.7%. The lesson for a 12-mark answer: gross margin is only comparable between firms that classify their costs the same way, which is exactly why examiners want operating margin as well.
Worked example 3 · JD Sports, Acid test
A simplified JD Sports balance sheet shows current assets £900m (including inventory £550m) and current liabilities £600m.
Current ratio = £900m ÷ £600m = 1.50 (comfortable)
Acid test = (£900m − £550m) ÷ £600m = 0.58 (low)
Note the gap: JD has a lot of stock. If sportswear demand crashed, the acid test reveals real liquidity risk.
Worked example 4 · Local cafe, Payback
A Manchester cafe owner spends £28,000 on a new oven. The oven is forecast to save £700/month in supplier costs.
Annual cash flow saving = £700 × 12 = £8,400
Payback period = £28,000 ÷ £8,400 = 3.33 years (3 years 4 months)
Decision rule: if the cafe's payback threshold is 3 years, this project is rejected on payback grounds, though ARR and NPV might still favour it.
Exam Technique, Calculation Questions
- Always state the formula first. Examiners mark workings, a wrong final answer with the right formula often earns full method marks.
- Show units throughout. £, %, units, days. Markers cannot reward an answer of "1,077" unless the unit is clear.
- Round only at the final step. Round mid-calculation and you compound errors.
- If a question gives data you do not use, ask why. A-Level papers rarely include unused data, if you skipped something, recheck.
- For NPV / discount tables, identify Year 0. Year 0 is the investment. Don't apply a discount factor to Year 0.
The Business School · Calculation Cheat Sheet
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