![]() There are a number of reasons why this could be helpful, for example if you are relying on the profits for your personal income, rather than taking a salary that is already accounted for within the fixed costs. Should you require a certain profit level, adding this into your fixed costs will allow you to calculate your break-even sales after taking this into consideration. Unlike the other two break-even calculations, the payback period requires fixed costs and start-up costs to be split, for example, a piece of manufacturing equipment may only need to be purchased once, whereas rent is an ongoing fixed cost. The chart shows the total revenue at which you will break-even, and below the chart, this information is given, along with the break-even sales and number of units (as entered at the top of the sheet). This time however, the focus is on the unit sale price information. Again, the chart will show you your total revenue, total costs and profit (or loss) based on the number of units sold. As with the break-even units sheet, enter your fixed and variable costs below the chart in the appropriate sections. VC-D - Total Variable Cost Per Unit Dollar-BasedĪt the top of the sheet, enter the number of units you are looking to sell.VC-P - Total Variable Cost Per Unit Percentage-Based.This can be useful if you want to try and calculate the price you need to sell a set number of units at in order to break-even. The next sheet on the spreadsheet calculates the break-even price per unit. Below the chart, you will find the number break-even units and break-even sales. ![]() Once you have entered all of this information, the chart will show you your total revenue, total cost and profit (or loss) based on the number of units sold. ![]() The variable costs is split into two sections, one for costs equating to a dollar amount per unit, for example, manufacturing costs, and another for percentage costs per unit, e.g. The fixed costs section should be used for entering costs that do not vary depending on the number of units sold or manufactured, for example rent. The definition of the variables used in this equation are listed below:Įnter your unit sale price above the chart, and use the areas below it to enter your fixed and variable costs. There are two ways of calculating this break-even point: Break Even ChartĪ breakeven chart is a useful way of displaying your total revenue, total cost and profit (or loss), along with you're a break-even point. This will enable you to see how your business will perform over a period of time, allowing you to plan for the future. Our break-even calculator also allows you to calculate a net income before taxes (NIBT) using the monthly number of units sold. The break-even payback period is the amount of time it will take you to break-even. the point at which your total revenue equals your total costs. The break-even price is the dollar amount of sales you would have to make in order to cover your costs, i.e. The break-even number of units is the number of units that you would have to sell in order to break-even, or put another way, the point at which your investment will start to make a positive return. The information you enter can be easily changed, allowing you to easily look at factors such as the impact of a small increase in cost or sale price. Our break-even calculator allows you to work out your break-even number of units, break-even price and break-even payback period. While they essentially all use the same information to perform a calculation, there are differences between them, and you may favour one method over the others. There are a number of ways in which break-even can be viewed. This feature helps to define the proportion of the product in the total sale as a constant over the period of time. 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. Bonus Downloads Bonus #1 Break-Even Point Calculator for Multiple Products
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