Mar 4, 2017

Break-Even Financial Model

This is a great tool for any business or organization to use in order to see how much money they need to make in sales to break even. It will be effective and useful no matter what you are doing. The user interface is super easy and there are some nice charts to make things a bit more visual.




Pricing
*After purchase, the model will be e-mailed to you.

Latest Updates (Built in 5-year forecast, cash flow analysis, and valuation)


So how easy is it to use?

1. Enter your fixed costs in the blue text under fixed costs section.
2. Enter your variable costs (as a %) in the blue text under variable costs section.
3. Look at the break-even sales figure.

A few things to be aware of. The break even sales figure will apply to the period of time that your fixed costs are happening. So if it is your monthly fixed costs, than the number that you will see is saying how much you have to make in sales to break even for that month. If the fixed costs are representing an annual basis, than the break even analysis is going to tell you a number you have to make annually to get into the green.

Profit Margin Addition

I added a portion right below the break even sales to show your organization how much sales you have to make in order to achieve a certain net profit margin. This means you drive the sales figure goal by entering a profit % target. If you enter 50%, it is going to mean you have to make enough cash to cover all your fixed costs, all your variable costs, and then have enough left over so that it equals 50% of your total sales.

It is noted that you can't make a net profit % target that is great than the current % of fixed costs to total sales + % of variable costs. That would mean you are telling the model to find a number that does not equal 100%.

Note, I have added in comments to each cell that needs an explanation so you can better follow and use with the additional add-ons.

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