Franchise Cost Calculator

PKR
PKR
%
PKR
yrs
Finance Updated 16 Jun 2026

Calculate total investment and net profit from a franchise opportunity. Enter franchise fee, setup costs, monthly revenue, and royalty percentage to compute total investment, total royalties, and projected net profit over the franchise term.

Formula

Monthly Royalty = Revenue × Royalty% Total Royalties = Monthly Royalty × Years × 12 Total Investment = Franchise Fee + Setup Cost + Total Royalties Revenue Total = Monthly Revenue × Years × 12 Net Profit = Revenue Total − Total Investment

Example Calculation

Inputs
  • Franchise Fee (PKR): 500000 PKR
  • Setup Cost (PKR): 2000000 PKR
  • Monthly Royalty (%): 5 %
  • Monthly Revenue (PKR): 500000 PKR
  • Franchise Term (Years): 5 yrs

Suppose you enter: Franchise Fee (PKR) = 500000, Setup Cost (PKR) = 2000000, Monthly Royalty (%) = 5, Monthly Revenue (PKR) = 500000, Franchise Term (Years) = 5. The calculator applies the formula (Monthly Royalty = Revenue × Royalty%\nTotal Royalties = Monthly Royalty × Years × 12\nTotal Investment = Franchise Fee + Setup Cost + Total Royalties\nRevenue Total = Monthly Revenue × Years × 12\nNet Profit = Revenue Total − Total Investment) and shows all output values below. Change any input field to immediately see how the result changes.

Frequently asked questions

What is the Franchise Cost?
Franchise cost includes the upfront fee (paid to franchisor), setup/build-out costs, and ongoing royalties typically calculated as a percentage of monthly revenue. This calculator sums these to show total investment and net profitability.
When should I use this calculator?
Use this calculator during franchise evaluation to estimate your total investment and 5–10 year break-even analysis. Compare results across different franchise opportunities.
What units should I enter?
Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).
How accurate are the results?
Assumes constant rates, no additional fees, and no tax unless stated. Actual outcomes vary with market conditions.
How do I interpret the result?
Compare against your financial goals or market benchmarks. A higher figure may mean greater cost or greater return depending on context.
How can I verify the calculation manually?
Use the displayed formula and work through the numbers step by step. If your manual result differs slightly, check rounding and unit conversions first.
Can I use this for planning and budgeting?
Yes. Run best-case, expected, and worst-case inputs to compare outcomes and make safer planning decisions.