Calculating Break Even Analysis Excel

Break even analysis is a crucial tool for businesses to understand their profitability. It helps determine the sales volume required to cover both fixed and variable costs. Our calculator simplifies this process, allowing you to perform break even analysis excel effortlessly.

1. Enter your fixed costs, variable costs per unit, and selling price per unit.
2. Click the ‘Calculate’ button.
3. View your results and break even chart below.

The break even point (BEP) is calculated using the formula:

BEP = Fixed Costs / (Selling Price per Unit – Variable Costs per Unit)

Comparison of Fixed, Variable, and Total Costs

Units Sold	Fixed Costs	Variable Costs	Total Costs

Profit/Loss per Unit Sold

Units Sold	Revenue	Profit/Loss

• Regularly perform break even analysis to monitor your business’s profitability.
• Consider seasonality and market fluctuations when setting your break even point.
• Use this tool to inform your pricing strategy and sales targets.

What is the break even point?

The break even point is the sales volume at which total revenue equals total cost, resulting in neither profit nor loss.

How can I improve my break even point?

Reduce fixed costs, increase selling price, or decrease variable costs per unit.

Learn more about break even analysis from the U.S. Small Business Administration

Understand break even analysis with Khan Academy