Using What If Analysis In Excel To Calculate Break Even

Introduction & Importance

Using what-if analysis in Excel to calculate break-even points is a powerful tool for businesses to make informed decisions…

How to Use This Calculator

1. Enter your fixed costs, variable cost per unit, selling price per unit, and units sold.
2. Click ‘Calculate’.
3. View your results and break-even chart.

Formula & Methodology

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

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

Real-World Examples

Data & Statistics

Comparison of Break-Even Points

Scenario	Fixed Costs	Variable Cost	Selling Price	Units Sold	Break-Even Point

Expert Tips

• Regularly review and update your break-even analysis to reflect changes in your business.
• Consider using sensitivity analysis to test different scenarios.

Interactive FAQ

What is the break-even point?

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

For more information, see SBA’s guide to break-even analysis.