How to Calculate Recurring Costs

When calculating a monthly budget for either a household or a business, tally your recurring expenses before including items that could fluctuate in cost. Recurring costs continue until a debt is paid or until services are no longer used. For instance, your cable television provider might debit your bank account or credit card for as long as you receive service. Alternatively, your bank might debit your account until the final installment is paid for an auto loan. As an example of a nonrecurring cost, gasoline usage might vary, making it more difficult to calculate or project.

Instructions

1

Gather your bank statements, payment receipts and credit card statements. Check your financial records against your credit report. View the expenses reflected on your credit report at annualcreditreport.com to ensure you have included all of your monthly expenses if you aren't confident they are all included in your bank and credit card statements.

2

Review your expenses to locate items that have recurring costs. For instance, your bank statement might reflect a $300 debit for your auto loan payment, and your credit card could reflect a $100 monthly payment for auto insurance costs. To estimate your monthly recurring costs, these types of continuous expenses should be included in your monthly budget. Items that are not deducted regularly or whose cost varies month to month should not be included in this tally.

3

Add your ongoing expenses together to obtain your monthly recurring costs.