Break-Even Analysis Calculator Equation Free
Are you dealing with any significant or more significant project of a unique kind and don’t know where to get started? Here, you can get a free breakeven analysis calculator that shows your project’s most relevant expenses. To tell the truth, companies have numerous tasks to work upon at any specific time of the year, requiring them to act professionally and inefficiently.
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 breakeven point. “(according to blog, “advantages and disadvantages of breakeven 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 can cover their basic expenses while getting no costs if no profit! Breakeven analysis is now easy with our specialized excel template available here.
Design and features of breakeven analysis calculator
Still, confused about getting it or not? You can now learn the correct use of the template by downloading it here:
Break-even analysis- the start
Add your company name here. For the period, you can see the sections, selling price, breakeven units, and breakeven sales here. Start filling in this information and carefully add the breakeven units and sales. Go this twice.
This part of the template shows the fixed costs of the companies. These may include advertising, accounting ledger, depreciation, internet, insurance, supplies, tax, rent, and utilities. You are free to edit any of the posts here. Add yours In other costs, or you can add any more posts here as well. Before going ahead, recheck them. Total fixed costs are calculated by the calculator, and you can see the full or individual prices.
This section of the template shows the company’s variable costs so that the breakeven analysis calculator can work efficiently. Variable charges may differ each year, and you may need to update them each year. These costs consist of goods, direct labor, overheads, and others. Variable costs based on percentage comprised of commissions and others.
The template will calculate the total variable cost per unit here. Then, the contribution margin per unit is computed using the formula (P-V). At this point, you can add any variable costs as well.
Break-even analysis- point
Based on the above data filled by you, the calculator 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 can see the risk involved when you are interested in growing a business.
Total Costs = Total Revenue
TC = TR
TFC + TVC = P × X
TFC + (V × X) = P × X
The variables and definitions are used in the breakeven 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