Excel Break-Even Analysis Template [Free Download]

Generally, Break-even analysis is a financial calculation to compare income from sales to the fixed costs of a business. Through this calculation, you will find the total number of units you have to sell or the total amount of sales required to cover your business costs. It is a great tool for business owners to start a new business and continue it accordingly.

In this Excel tutorial, you will find a product break-even analysis template along with all the instructions to use it properly. You can download it from here for free. Moreover, you will find a Social Security break-even analysis template to find your optimum timing for claiming Social Security benefits.

These templates will be greatly helpful for business owners, new product launchers, entrepreneurs, retail business persons, social security planners, job holders, etc.

In the following image, you will see a product break-even analysis template for a product where you can input your Product Details, Fixed Costs, and Variable Costs. With this information, you will get a break-even analysis automatically finding your break-even units and break-even sales.

Download Excel Template

For: Excel 2007 or later
License: Private Use

What is Break-Even Analysis?

In general, Break-even analysis is a financial analysis procedure to determine when a business will start to generate profits. Through this analysis, one can find the required number of units, required sales amount, or required unit price to reach a position where the total selling price will equal the fixed cost of the business. That is, at this point, the business will result in neither loss nor profit. This is called the break-even point. After this point, the business will generate profits.

For business owners, this analysis is a must to understand their capability, competency, and responsibilities in their business.

How to Find Break-Even Points in Excel?

There are several ways to find the break-even point in your break-even analysis depending on your desired parameter. You can generally look for 3 parameters to find the break-even point of your business. Such as Break Even Units, Break Even Sales, Break Even Price.

1. Break-Even Units:

This is the unit that you need to sell to reach your break-even point.

Where,

Contribution Margin = Selling Price – Variable Cost Per Unit

2. Break-Even Sales:

This is the required sales amount you need to reach at the break-even point. The formula for break-even sales is:

Where,

Contribution Margin Ratio = 1 – (Variable Cost Per Unit / Selling Price)

3. Break-Even Price:

This is the price of the product you will need to reach the break-even point when you know the production volume. The formula is:

Excel Break-Even Analysis Template

When working with break-even analysis templates, the product break-even analysis template is the most famous one. Before starting a business or launching a new product, it is a must to estimate the time and other required parameters to reach the point where your revenue will cover your business costs.

Other than this template, the Social Security break-even analysis template is also an important template from which you will be able to calculate your optimum timing for claiming social security benefits according to your financial condition and needs.

Product Break-Even Analysis Excel Template

A product break-even analysis template mainly contains product details, fixed costs, and variable costs. In this template below, you will have to just input these values properly. After inserting these input values, you will find your fixed and variable costs calculated automatically. These output values will calculate break-even units and break-even sales for your product automatically.

How to Use This Template

Follow the instructions below to use this template efficiently.

Instructions:

1. Insert your product information in the Product Details section according to the given parameters.
   
2. After inserting the product information, insert your cost parameters in the Fixed Costs and Variable Costs section according to their types and headings.
   
3. After inserting the cost inputs, you will find all the required output values such as Total Fixed Costs, Total Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Break Even Units, and Break Even Sales.
   

Social Security Break-Even Analysis Excel Template

To find the optimum timing to take social security benefits, the Social security break-even analysis is an important template. This template is useful for determining the below factors.

• Optimum Benefit Timing
• Long-Term Financial Planning
• Risk Management
• Decision Making
• Considering Spousal Benefits

Etc.

You can use Excel Social Security Break-Even Analysis template according to your data. You can also make a new template following this tutorial.

Enter your inputs in the Benefit column and Benefit at FRA. You will find your desired result in year and month accordingly.

Benefits & Limitations of Break-Even Analysis

Benefits:

• It provides you with the necessary pricing of your product to generate profit early.
• It helps you to set up your sales target or unit target to attain business profit.
• It enables you to analyze and mitigate your business risks.

Limitations:

• It does not take market conditions like demand for the product, market competition, etc. into account.
• It can not find the break-even dynamically when working with multiple products at a time. It is mainly based on a single product at a time.
• Its algorithm and concept are too simple and it does not depend on reliable data always.
• It does not take time into account.

Excel Break-Even Analysis Template Tips

• When working with the Excel break-even analysis template, make sure, your inserted data and formulas are all correct. Because, if there is any single error anywhere in your template, your whole result will show you an error without any warning.
• Follow the given notes to insert your values properly.
• The formula cells are protected. So, if you want to change those cells or formulas, go to the Review tab and unprotect the sheet. But, it is advisable not to do so.

Conclusion

So, you will get break-even units and break-even sales for your product from this template. You will also get break-even point for your social security benefit timing from this tutorial. Insert the inputs properly and you will get your desired results accordingly.