Break Even Analysis Template (Excel XLSX)

Do you know how much revenue you need to make in order to turn a profit? This may be difficult to understand if you've never thought about it and the financial equation is not super intuitive to build. The easiest way to think about it is in relation to personal income tax. You know if you make a certain amount of money / income, you will have to pay a certain percentage of that to taxes.

At some income level, you will just make enough to cover all your household expenses after taxes and save 0. This is the break even point. For businesses, the concept is similar. You want to know what what point does a single dollar earned result in profits above 0.

This is a break-even analysis that goes a bit deeper. You can use it for any period (monthly/yearly/quarterly) or what have you. The inputs are fixed expenses and variable expenses for a single defined period.

The formula takes that information and calculates the amount of top-line revenue that is required to cover all the fixed and variable costs that have been entered for the period.

Some extras:

•  Profit Margin Target (enter a desired profit margin and based on fixed/variable costs the sales revenue required will populate in order to achieve the profit margin input).
•  DCF Analysis (based on the assumptions tab and the revenue output of the profit margin analysis, this template will show a five year forecast that includes fixed/variable costs and profit margin based on how the assumptions define growth each year).
•  A present value calculation is then done on that output.
•  Terminal value based on a defined percentage of year 5 sales.
•  Clean visualizations of this analysis Instructional video included in file.