The Flow-Through calculator computes the Flow-Through associated with a business' ability to cause more revenue to equate to more operating profits.
INSTRUCTIONS: Choose currency and enter the following:
Flow-Through (FT): The calculator returns the Flow-Through as a percentage. However, this can be automatically converted to a real number via the pull-down menu.
The Flow-Through formula is:
FT = (GOPT-GOPL)/(TRT-TRL)
where:
A legal business entity that passes income on to the owners and/or investors. Flow-through entities are a common device used to limit taxation by avoiding double taxation. Only the investors/owners are taxed on revenues, not the entity itself.