Break-even point analysis is a very important tool for any sort of business. Here, I will show **3 **effective methods to **calculate break-even point in** **Excel**.

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## Introduction to Break Even Point

The break-even point is the calculation of product units to be sold for a specific unit price or calculating the selling price for a specific unit of product in order to make no profit or loss. The main purpose of this analysis is to find the marginal condition of any business. For calculating the break-even point we need:

**Fixed costs****Variable costs****Selling price per unit****Revenue**

The condition for the break-even point is:

**Revenue = Total Fixed Costs (TFC) + Total Variable Costs (TVC)**

## 3 Effective Methods to Calculate Break Even Point in Excel

In this section, I will show **3 **effective methods to calculate the break-even point in **Excel**. I will use different features of **Excel** to calculate the break-even price. You can also calculate break-even price and break-even total sales in a similar manner.

### 1. Use of Goal-Seek Feature to Calculate Break-Even Point

In the first method, I will show the use of the **Goal-Seek **feature of **Excel**. I have used a dataset containing **Unit Price**, **Unit Sold**, **Revenue**, **Cost Per Unit**, **Variable Costs**, **Fixed Costs **and **Profit**. Letâ€™s follow the stepwise procedures.

- Primarily, fill up some data like in the image below. You can change the data according to your wish.

- Then, calculate
**Revenue**by using the following formula in**Cell C6**.

`=C4*C5`

- Afterward, insert the following formula in
**Cell C8**to get the**Variable Costs**.

`=C5*C7`

- Now, calculate the
**Profit**using the formula given below.

`=C6-C8-C9`

- Then, go to the
**Data**tab and select**What-If Analysis > Goal Seek**.

- In the appeared
**Goal Seek**window, give the cell reference for**Profit**(**$C$10**) in the**Set cell**section, again set**To Value**as**0**, also set**By changing cell**with**Unit Price**cell (**$C$4**).

- Further, press
**OK**and in the next appeared window you will see the solution. - Again, press
**OK**.

- Finally, we will see the updated
**Unit Price**as the result of the break-even point.

**Read More: How to Do Break Even Analysis with Goal Seek in Excel**

### 2. Determine Break Even Point Applying Simple Formulas

We can also use simple formulas to calculate the break-even point. For demonstration, I have used the same dataset as **Method 1**. Follow the stepwise procedures given below for this method.

- First, fill up some data as in the image below.

- Then, write the following formula in
**Cell C8**to calculate the**Variable Costs**.

`=C5*C7`

- Afterward, write the following formula in
**Cell C4**to calculate the**Unit Price**.

- In addition, you can calculate the
**Revenue**in**Cell C6**using the formula given below.

`=C4*C5`

- Finally, change the
**Unit Sold**and you will see the adjusted**Unit Price**for the break-even point.

**Read More: How to Calculate Break Even Sales with Formula in Excel**

### 3. Utilize Excel Chart to Calculate Break Even Point

We can also use the **Excel **Chart to determine the break-even point. Letâ€™s follow the stepwise procedures given below.

- First, create a dataset like in the image below. You can change the data according to your need.

- Secondly, calculate the
**Revenue**in**Cell F5**using the following formula.

`=E5*$C$4`

- Then, write the following formula in
**Cell G5**to find the**Costs**.

`=$C$4*$C$5+$C$6`

- Further, use the following formula in
**Cell H5**to get the**Profit**.

`=F5-G5`

- Afterward, use the
**Fill Handle**to copy the formulas in the whole table for different**Unit Price**. - Next, select the table.

- Now, go to the
**Insert**tab and select**Insert Line or Area Graph > Line**.

- Simultaneously, we will see a line chart like below.

- Select the chart and
**right**â€“**click**to select**Select Data**.

- After that, in the
**Select Data Source**window select**Unit Price**and click on**Edit**in the**Horizontal (Category) Axis Labels**.

- In the
**axis Labels**window, select the whole column**Unit Price**. Press**OK**.

- Finally, we will see
**Profit**is**0**for**50**as**Unit Sold**in the table. Also, in the line chart, we will see the**Revenue**line and**Costs**line meets when**Unit sold**is**50**.

**Read More: How to Make a Break-Even Chart in Excel (with Easy Steps)**

## Conclusion

Break-even point calculation helps a lot for business analysis and development. In this article, I have shown **3 **effective methods to calculate the break-even point in **Excel**. If you have any queries or suggestions, let us know by commenting. Visit our **ExcelDemy Website **for similar articles regarding **Excel**.