Break Even Analysis
Templates

Break-Even Analysis Template in Excel

What is break-even Analysis:

Break-Even Analysis is used to check what number of units should be sold to fulfill all expenses of a business. We have used the Fixed and Variable (per unit) costs to do this analysis.

 

What is the break-even point?

 

The break-even point of a business is where the overall cost (Fixed + Variable) is the same as the Revenue. The lower the break-even point, the upper the financial stability and solvency of the firm.

 

Break-even analysis is critical in business planning and company finance because assumptions about costs and potential sales determine if a corporation (or project) is on target for profitability.

 

Break-Even Analysis Calculation:

To calculate the Break-Even Point, we need below things-

  • Price Per Unit: the worth at which you’re going to sell the merchandise
  • Fixed Cost: Rent, advertisement, salary, etc.
  • Variable Cost (per unit): Cost of products sold, packing, etc.
  • Contribution Margin (per Unit): Price per unit – Variable Cost (per unit)
Break-Even Point = fixed charge / Contribution Margin (per unit)

Break-Even Sale = Break-Even Point * Price Per Unit
Break Even Analysis
Break Even Analysis

 

We have created a Profit and Loss table with different number of units.

Profit and Loss table
Profit and Loss table

Watch the step-by-step video tutorial:

Click here to download the template file

PK
My Name is PK. I am founder of PK-AnExcelExpert.com. I am a Microsoft Certified Professional. I have more than 12 years of experience in Data Visualization, Excel Automation and dashboard creation. Excel is my passion and I like to do always something innovative in Excel and share it with other people.
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