Quick breakeven analysis Model
Originally published: 29/01/2021 13:09
Last version published: 08/09/2022 12:02
Publication number: ELQ-11468-4
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Quick breakeven analysis Model

Breakeven analysis model in Microsoft Excel to download.

Description
This easy to use and customisable breakeven analysis template enables you to identify the minimum level of sales needed to make a profit. 

This is a critical analysis to understand:
How long it will be before you turn a profit?
What are the best pricing levels?
Which costs do you need to cover?
Should you upgrade your machinery? 


With this easy to use analysis tool, we build up your:
⚡Sales volumes - How many units you ship in a given time period (this can be a good or service)
⚡Unit pricing - How much you charge per unit
⚡Variable costs - costs that occur in making a sale, which rise in proportion to your sales e.g. direct labour and materials, commissions, packaging, royalties, or merchant fees
⚡Fixed costs - costs that occur regardless of whether you make a sale e.g. insurance, salaries & benefits or rent 
⚡Your profit profile - given the volumes, pricing and costs


With this analysis you will:
💪 Understand at what point you will start making a profit
💪 Determine your best pricing strategy
💪 Understand your unit costs and overall cost structures
💪 Build your minimum unit sales targets
💪 Set your budgets and gain focus 


You can also run up to 5 scenarios to understand how increases (and decreases) in your unit price and costs will impact the breakeven volumes. 


The analysis is also pre-populated to offer additional guidance.


The workbook is made up of:
1/ Introduction - clear instruction on how to use the model
2/ Breakeven analysis - where you input, test scenarios and calculate your breakeven point

This Best Practice includes
1 Breakeven analysis workbook

Acquire business license for $29.00

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Further information

To enable business owners and managers to run a quick breakeven analysis and make better decisions


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