Tip: Other languages are Google-Translated. You can visit the English version of this link.
Log in
x
or
x
x
Register
x

or

How to do break-even analysis in Excel?

Break-even analysis can help you get the point when the net profit is zero, which means the total revenues equals to the total expenses. It is quite useful to price a new product when you can forecast your cost and sales.

Do break-even analysis with Goal Seek feature

Do break-even analysis with formula

Do break-even analysis with chart

Easily combine multiple worksheets/workbooks/CSV files into one worksheet/workbook

It may be tedious to combine dozens of sheets from different workbooks into one sheet. But with Kutools for Excel’s Combine (worksheets and workbooks) utility, you can get it done with just several clicks! Full Feature Free Trial 30-day!
ad combine sheets books 1

Office Tab Enable Tabbed Editing and Browsing in Office, and Make Your Work Much Easier...
Kutools for Excel Solves Most of Your Problems, and Increases Your Productivity by 80%
  • Reuse Anything: Add the most used or complex formulas, charts and anything else to your favorites, and quickly reuse them in the future.
  • More than 20 text features: Extract Number from Text String; Extract or Remove Part of Texts; Convert Numbers and Currencies to English Words.
  • Merge Tools: Multiple Workbooks and Sheets into One; Merge Multiple Cells/Rows/Columns Without Losing Data; Merge Duplicate Rows and Sum.
  • Split Tools: Split Data into Multiple Sheets Based on Value; One Workbook to Multiple Excel, PDF or CSV Files; One Column to Multiple Columns.
  • Paste Skipping Hidden/Filtered Rows; Count And Sum by Background Color; Send Personalized Emails to Multiple Recipients in Bulk.
  • Super Filter: Create advanced filter schemes and apply to any sheets; Sort by week, day, frequency and more; Filter by bold, formulas, comment...
  • More than 300 powerful features; Works with Office 2007-2019 and 365; Supports all languages; Easy deploying in your enterprise or organization.

arrow blue right bubble Do break-even analysis with Goal Seek feature

Supposing you are going to sale a new product, and you know the variable cost of per unit and the total fixed cost. Now you are going to forecast the possible sales volumes, and price the product based on them.

1. Make an easy table, and fill items with given data in the table. See left screenshot:

2. Enter proper formulas to calculate revenue, variable cost, and profit. See left screenshot:
Revenue = Unit Price x Unit Sold
Variable Costs = Cost per Unit x Unit Sold
Profit = Revenue – Variable Cost – Fixed Costs

3. Click the Data > What-If Analysis > Goal Seek.

4. In the opening Goal Seek dialog box, please do as follows (see above screenshot):
(1) Specify the Set Cell as the Profit cell, in our case it is Cell B7;
(2) Specify the To value as 0;
(3) Specify the By changing cell as the Unit Price cell, in our case it is Cell B1.
(4) Click OK button.

5. And then the Goal Seek Status dialog box pops up. Please click the OK button to apply it.

Now it changes the Unit Price from 40 to 31.579, and the net profit changes to 0. Therefore, if you forecast the sales volume is 50, and the Unit price cannot be less than 31.579, otherwise loss occurs.

Download complex Break-even Template

http://office.microsoft.com/en-us/templates/breakeven-analysis-TC001116512.aspx
http://office.microsoft.com/en-us/templates/break-even-analysis-TC001017515.aspx

Demo: Do break-even analysis with Goal Seek feature in Excel

 

Kutools for Excel includes more than 300 handy tools for Excel, free to try without limitation in 30 days. Download and Free Trial Now!

arrow blue right bubble Do break-even analysis with formula

Comparing to the Goal Seek feature, we can also apply the formula to do the break-even analysis easily in Excel.

1. Make an easy table, and fill items with given data in the table. In this method, we suppose the profit is 0, and we have forecasted the unit sold, the cost per unit, and fixed costs already. See below screenshot:

2. In the table, type the formula =B6/B2+B4 into Cell B1 for calculating the Unit Price, type the formula =B1*B2 into Cell B3 for calculating the revenue, and type the formula =B2*B4 into Cell B5 for variable costs. See below screenshot:

And then when you change andy one value of forecasted unit sold, cost per unit, or fixed costs, the value of unit price will change automatically. See above screenshot:

Tip: Save a range as AutoText entry (remaining cell formats and formulas) for reusing in future
It must be very tedious to refer cells and apply multiple formulas for the break-even analysis every time. Kutools for Excel provides a cute workaround of AutoText utility to to save the range as an AutoText entry, which can remain the cell formats and formulas in the range. And then you can reuse this range with just one click in any workbook. Full Feature Free Trial 30-day!


arrow blue right bubble Do break-even analysis with chart

If you have recorded the sales data already, you can also make the break-even analysis with chart in Excel. This method will guide you to create a break-even chart easily.

1. Prepare a sales table as below screenshot shown. In our case, we assume the sold units, cost per unit, and fixed costs are fixed, and we need to make the break-even analysis by unit price.

2. Finish the table as below shown:
(1) In the Cell E2, type the formula =D2*$B$1, and drag its AutoFill Handle down to RangeE2:E13;
(2) In the Cell F2, type the formula =D2*$B$1+$B$3, and drag its AutoFill Handle down to Range F2:F13;
(3) In the Cell G2, type the formula =E2-F2, and drag its AutoFill Handle down to the Range G2:G13.

So far, we have finished the source data of break-even chart we will create later. See below screenshot:

3. In the table, please select the Revenue column, Costs column, and Profit column simultaneously, and then click Insert > Insert Line or Area Chart > Line. See screenshot:

4. Now a line chart is created. Please right click the chart, and select Select Data from the context menu. See below screenshot:

5. In the Select Data Source dialog box, please:
(1) In the Legend Entries (Series) section, select one of series as you need. In my example, I select the Revenue series;
(2) Click the Edit button in the Horizontal (Category) Axis Labels section;
(3) In the popping out Axis Labels dialog box, please specify the Unit Price column (except the column name) as axis label range;
(4) Click OK > OK to save the changes.

Now in the break-even chart, you will see the break-even point occurs when the price equals to 36 as below screenshot shown:

Similarly, you can also create a break-even chart to analyze the break-even point by sold units as below screenshot shown:

Demo: Do break-even analysis with chart in Excel

Kutools for Excel includes more than 300 handy tools for Excel, free to try without limitation in 30 days. Download and Free Trial Now!

Easily export/save selection as separate PDF/CSV/TEXT/HTML files in Excel

For example, when you finish your break-even analysis in Excel, you may want to make your presentation with this break-even analysis. In this condition, you can apply Kutools for Excel’s Export Range To File utility to quickly export the selection as a separate PDF file, HTML file, CSV file, Text file, etc. Full Feature Free Trial 30-day!
doc break even analysis ad 2


Kutools for Excel Solves Most of Your Problems, and Increases Your Productivity by 80%

  • Reuse: Quickly insert complex formulas, charts and anything that you have used before; Encrypt Cells with password; Create Mailing List and send emails...
  • Super Formula Bar (easily edit multiple lines of text and formula); Reading Layout (easily read and edit large numbers of cells); Paste to Filtered Range...
  • Merge Cells/Rows/Columns without losing Data; Split Cells Content; Combine Duplicate Rows/Columns... Prevent Duplicate Cells; Compare Ranges...
  • Select Duplicate or Unique Rows; Select Blank Rows (all cells are empty); Super Find and Fuzzy Find in Many Workbooks; Random Select...
  • Exact Copy Multiple Cells without changing formula reference; Auto Create References to Multiple Sheets; Insert Bullets, Check Boxes and more...
  • Extract Text, Add Text, Remove by Position, Remove Space; Create and Print Paging Subtotals; Convert Between Cells Content and Comments...
  • Super Filter (save and apply filter schemes to other sheets); Advanced Sort by month/week/day, frequency and more; Special Filter by bold, italic...
  • Combine Workbooks and WorkSheets; Merge Tables based on key columns; Split Data into Multiple Sheets; Batch Convert xls, xlsx and PDF...
  • More than 300 powerful features. Supports Office/Excel 2007-2019 and 365. Supports all languages. Easy deploying in your enterprise or organization. Full features 30-day free trial.
kte tab 201905

Office Tab Brings Tabbed interface to Office, and Make Your Work Much Easier

  • Enable tabbed editing and reading in Word, Excel, PowerPoint, Publisher, Access, Visio and Project.
  • Open and create multiple documents in new tabs of the same window, rather than in new windows.
  • Increases your productivity by 50%, and reduces hundreds of mouse clicks for you every day!
officetab bottom
Say something here...
symbols left.
You are guest ( Sign Up? )
or post as a guest, but your post won't be published automatically.
Loading comment... The comment will be refreshed after 00:00.
  • To post as a guest, your comment is unpublished.
    DaFiAn · 2 months ago
    Hi,
    Thanks for explaining all the details about making a grafiek. It was verry usefull. Only thing I am missing is in how many time u have u're break-even. I can see what the price it needs to be to have a break even, but when u just start u have no idea how many sold units u sell in how many time. So if we just estimate it, on what we estimate it?
  • To post as a guest, your comment is unpublished.
    adrienne · 3 years ago
    How do I use this same formula when the variable cost differs based on quantity sold? Like the variable cost =$10 if I sell between 0-100, $9 if I sell 101-200, etc. Is this when I am supposed to used a data table? Totally confused, any help appreciated!
  • To post as a guest, your comment is unpublished.
    Felix · 4 years ago
    Hi,
    is it possible that I don't have any fixed costs?
    I'm buying and selling stuff from home.
    If I have a cost per unit amount, would this also be considered a 'fixed cost'?

    Thanks
    Felix
    • To post as a guest, your comment is unpublished.
      christina · 3 years ago
      cost per unit is a variable cost. (It VARIES on how many units you sell is a good way to remember it)
  • To post as a guest, your comment is unpublished.
    Alex_Bach · 5 years ago
    When attempting to download the example using a MAC you get a .cat file that is.... useless...
  • To post as a guest, your comment is unpublished.
    Camilla · 6 years ago
    Simply, understandable and efficient way of doing it! Thanks for simplyfying economy :P