A business is said to break even when its profit is zero, that is when it is able to generate enough revenue to cover its costs.
After a period of time a business will normally settle down and stabilize to a steady break even figure. If the break even position is known then the management of a business can operate on a day to day basis by monitoring actual sales against break even sales.
The Excel break even calculator, available for download below, allows for up to four different options or scenarios to be considered at a time.
For each option, the unit selling price and cost price are entered and the gross margin and gross margin percentage are calculated. By entering a value for the fixed costs of the business, the break even revenue and the break even units are calculated.
Break Even Calculator Download
The break even calculator is available for download in Excel format by following the link below.
Users use this accounting break even calculator template at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a break even analysis template that you might use. It is a purely illustrative break even analysis spreadsheet. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the break even analysis business plan, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.