Dealing with any major or bigger project of unique kind and don’t know where to get started? Here you can get free break even analysis calculator which shows the most relevant expenses with your project. to tell the truth, companies have numerous projects to work upon at any specific time of the year and this require them to act professionally and in efficient manner.
Break Even Analysis Calculator
“Break-even analysis is the relationship between cost volume and profits at various levels of activity, with an emphasis placed on the break-even point. “(according to blog, “advantages and disadvantages of break-even published at toughnickel.com“.
Not to mention this, companies at the initiation or when growing into new branch are actually looking for the point where they are able to cover their basic expenses and while getting no costs if no profit! Breakeven analysis is now easy with our specialized excel template available here.
Design and features of break even analysis calculator
Still confused about getting it or not? You can now learn the right use of template by downloading it here:
Break even analysis- the start
Add your company name here. You can see the sections, for the period, selling price, break even units and break even sales here. Start filling this information here and do add the break even units and sales carefully. Go this twice.
This part of the template shows the fixed costs of the companies. These may consist of advertising, accounting ledger, depreciation, internet expenses, insurance expense, supplies, tax, rent and utilities. You are free to edit any of the costs here. Add yours In other costs or you can add any more costs here as well. before going ahead check them again. Total fixed costs are calculated by the calculator and you can see the total or individual costs as well.
Tis section of the template show the variable costs of the company so that breakeven analysis calculator can work efficiently. Variable costs may differ each year and you may need to update them each year. These costs consist of cost of good, direct labor, overheads and others. Variable costs based on percentage consist of commissions and others.
The template will calculate the total variable cost per unit here. Additionally contribution margin per unit is also calculated using formula, (P-V). at this point you are able to add any variable costs as well.
Break even analysis- point
Based on the above data filled by you the calculate will calculate the breakeven units for you using the formula (X= TFC/(PEV)
Break even sales are also calculated for you!
Why Break Even analysis?
- You can see when your business reaches profitability point and covers expenses!
- As a small company owner or owner of any form you are able to see the risk involved when you are interested in growing business.
Break Even Equation
Total Costs = Total Revenue
TC = TR
TFC + TVC = P × X
TFC + (V × X) = P × X
The variables and definitions used in the break-even equation.
- P = Selling Price per unit
- V = Variable Cost per unit.
- X = Number of Units Produced and Sold
- TR = Total Revenue = P * X
- TC = Total Costs = TFC + TVC
- TFC = Total Fixed Costs
- TVC = Total Variable Costs = V * X
- P-V = Contribution Margin per unit (CM)
- CMR = Contribution Margin Ratio = (P – V) / P