Break-even analysis is used by businesses to determine the time it will take to become profitable and usually is a part of a Business Plan. Whether you are a startup business, or are thinking of adding a product or service to your existing business venture, it is useful to take the time to run a break-even analysis to determine whether it is a financially viable venture, in terms of how many units you will need to sell to break even, and how long it will take to do so.
The actual calculations required to perform a break-even analysis are relatively simple. The calculations however are the easy part, determining your optimum sales unit price and accompanying variable costs can be much more difficult. Even fixed costs can be less than straightforward, as you may, for example, find yourself with a choice of premises with different rates of rent. While a break-even calculator cannot make these decisions for you, it can make the decision making process significantly easier for you as a business owner, by enabling you to easily look at different scenarios for break-even. Our Break Even Calculator will help you run the reports and analysis you need for your business.
Apr 08, 2018 Step 1, Open Excel and create a new blank workbook. You'll be creating multiple sheets in this workbook to handle tracking all of your costs.Step 2, Click the '+' button next to 'Sheet1' at the bottom of the screen. This will create a new blank worksheet.Step 3, Rename the new sheet to 'VariableCosts.' This sheet will house the table that tracks all of your product's variable costs, such.
Break Even Analysis
For Excel® 2007+ - version 1.0.0
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Requirements Microsoft Excel® 2007 or Higher (PC & Mac)
Installation Not Required
License Private Use(Resale and distribution not permitted) View License Agreement
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Break-Even Point Calculator for Multiple Products
This version of Break-Even calculator allows to calculate break-even units and break-even price and break-even period for multiple products using additional Sales Forecast feature. This feature helps to define the proportion of the product in the total sale as a constant over the period of time.