This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/Break-Even-Calculator-142 This excel sheet provides a Break Even Calculator which shows an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point. This is the amount that revenues can fall while still staying above the break-even point.

1. Break-Even Analysis [Company Name]
[Proposed Product] [Date]
For the Period:
Selling Price (P): 12.00$
Break-Even Units (X): 991 units
Break-Even Sales (S): 11,881.19$
Fixed Costs
Advertising 10,000.00$
Accounting, Legal
Depreciation
Interest Expense
Insurance
Manufacturing
Payroll
Rent
Supplies
Taxes (real estate, etc.)
Utilities
Other (specify)
Total Fixed Costs (TFC) 10,000.00$
Variable Costs
Variables Costs based on Dollar Amount per Unit
Cost of Goods Sold 1.00$ per unit
Direct Labor per unit
Overhead per unit
Other (specify) per unit
Sum: 1.00$
Variables Costs based on Percentage
Commissions 7.50% per unit
Other (specify) per unit
Sum: 7.50%
Total Variable Cost per Unit (V) 1.90$
Contribution Margin per unit (CM) = P - V 10.10$
Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 84.2%
Break-Even Point
Break-Even Units (X) X = TFC / (P - V) 991 units
Break-Even Sales (S) S = X * P = TFC / CMR 11,881.19$
Targeted Net Income
Targeted Net Income Before Taxes (NIBT) -$
Units required to reach targeted NIBT, X = (TFC + NIBT) / (P-V) 991 units
Sales required to reach targeted NIBT, S = (TFC + NIBT) / CMR 11,881.19$
Rate of return on sales before taxes = NIBT / S 0.0%
Tax Rate (T) 25%
Net Income After Taxes (NIAT) = (1-T)*NIBT -$
Rate of return on sales after taxes = NIAT / S 0.0%
Chart
Units (X) Fixed Cost Total Cost Total Revenue Profit (Loss)
0 10,000.00 10,000.00 - (10,000.00)
99.1 10,000.00 10,188.29 1,189.20 (8,999.09)
198.2 10,000.00 10,376.58 2,378.40 (7,998.18)
297.3 10,000.00 10,564.87 3,567.60 (6,997.27)
396.4 10,000.00 10,753.16 4,756.80 (5,996.36)
495.5 10,000.00 10,941.45 5,946.00 (4,995.45)
594.6 10,000.00 11,129.74 7,135.20 (3,994.54)
693.7 10,000.00 11,318.03 8,324.40 (2,993.63)
792.8 10,000.00 11,506.32 9,513.60 (1,992.72)
891.9 10,000.00 11,694.61 10,702.80 (991.81)
991 10,000.00 11,882.90 11,892.00 9.10
1090.1 10,000.00 12,071.19 13,081.20 1,010.01
1189.2 10,000.00 12,259.48 14,270.40 2,010.92
1288.3 10,000.00 12,447.77 15,459.60 3,011.83
1387.4 10,000.00 12,636.06 16,648.80 4,012.74
1486.5 10,000.00 12,824.35 17,838.00 5,013.65
1585.6 10,000.00 13,012.64 19,027.20 6,014.56
1684.7 10,000.00 13,200.93 20,216.40 7,015.47
1783.8 10,000.00 13,389.22 21,405.60 8,016.38
1882.9 10,000.00 13,577.51 22,594.80 9,017.29
1982 10,000.00 13,765.80 23,784.00 10,018.20
Total Cost
Total Revenue
Profit (Loss)
BEP
$(15,000)
$(10,000)
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
0 500 1,000 1,500 2,000 2,500
Units (X)
Break-Even Point
Total Cost
Total Revenue
Profit (Loss)
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2. Break-Even Price [Company Name]
[Proposed Product] [Date]
For the Period:
Number of Units (X): 100
Break-Even Price (P): 11.89$ per unit
Break-Even Sales (S): 1,189.19$
Fixed Costs
Advertising 1,000.00$
Accounting, Legal
Depreciation
Interest Expense
Insurance
Manufacturing
Payroll
Rent
Supplies
Taxes (real estate, etc.)
Utilities
Other (specify)
Total Fixed Costs (TFC) 1,000.00$
Variable Costs
Variables Costs based on Dollar Amount per Unit
Cost of Goods Sold 1.00$ per unit
Direct Labor per unit
Overhead per unit
Other (specify) per unit
Sum (Vd): 1.00$
Variables Costs based on Percentage
Commissions 7.50% per unit
Other (specify) per unit
Sum (Vp): 7.50%
Total Variable Cost per Unit (V) V = Vd + (Vp*P) 1.89$
Contribution Margin per unit (CM) = P - V 10.00$
Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 84.1%
Break-Even Point
Break-Even Price (P) P = (1/(1-Vp))*(Vd+(TFC/X)) 11.89$
Break-Even Sales (S) S = X * P = TFC / CMR 1,189.19$
Targeted Net Income
Targeted Net Income Before Taxes (NIBT) -$
Sales Price (P) required to reach targeted NIBT 11.89$
Sales required to reach targeted NIBT, S = X * P 1,189.19$
Rate of return on sales before taxes = NIBT / S 0.0%
Tax Rate (T) 25%
Net Income After Taxes (NIAT) = (1-T)*NIBT -$
Rate of return on sales after taxes = NIAT / S 0.0%
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3. Break-Even Price [Company Name]
[Proposed Product] [Date]
Chart
Price (P) Fixed Cost Total Cost Total Revenue Profit (Loss)
0 1,000.00 1,189.19 - (1,189.19)
1.78$ 1,000.00 1,189.19 178.38 (1,010.81)
2.97$ 1,000.00 1,189.19 297.30 (891.89)
4.16$ 1,000.00 1,189.19 416.22 (772.97)
5.35$ 1,000.00 1,189.19 535.14 (654.05)
6.54$ 1,000.00 1,189.19 654.05 (535.14)
7.73$ 1,000.00 1,189.19 772.97 (416.22)
8.92$ 1,000.00 1,189.19 891.89 (297.30)
10.11$ 1,000.00 1,189.19 1,010.81 (178.38)
11.30$ 1,000.00 1,189.19 1,129.73 (59.46)
12.49$ 1,000.00 1,189.19 1,248.65 59.46
13.68$ 1,000.00 1,189.19 1,367.57 178.38
14.86$ 1,000.00 1,189.19 1,486.49 297.30
16.05$ 1,000.00 1,189.19 1,605.41 416.22
17.24$ 1,000.00 1,189.19 1,724.32 535.14
18.43$ 1,000.00 1,189.19 1,843.24 654.05
19.62$ 1,000.00 1,189.19 1,962.16 772.97
20.81$ 1,000.00 1,189.19 2,081.08 891.89
22.00$ 1,000.00 1,189.19 2,200.00 1,010.81
23.19$ 1,000.00 1,189.19 2,318.92 1,129.73
24.38$ 1,000.00 1,189.19 2,437.84 1,248.65
Total Revenue
Profit (Loss)
BEP
$(1,500)
$(1,000)
$(500)
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00
Sales Price
Break-Even Price
Total Cost
Total Revenue
Profit (Loss)
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4. Payback Period [Company Name]
[Proposed Product] [Date]
Selling Price (P): 5.00$
Number of Units Sold (x): 100 per month
Payback Period (t): 0.00 months
Break-Even Sales: -$
Fixed Costs
Start-up / Development Costs
Development -$
Labor -$
Other start-up costs -$
Total Startup Costs (SC): -$
Recurring Costs specified as $ per Month
Advertising -$
Web Host Fees -$
Other recurring costs -$
Recurring Costs (RC): -$ per month
Total Recurring Costs: -$
Total Fixed Costs (TFC) = SC + RC * t -$
Variable Costs
Variables Costs based on Dollar Amount per Unit
Cost of Goods Sold -$ per unit
Direct Labor -$ per unit
Overhead -$ per unit
Other (specify) -$ per unit
Sum: -$
Variables Costs based on Percentage
Commissions 0.00% per unit
Other (specify) 0.00% per unit
Sum: 0.00%
Total Variable Cost per Unit (V) -$
Contribution Margin per unit (CM) = P - V 5.00$
Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 100.0%
Total Variable Cost (TVC) = V * x * t -$