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Break Even Analysis Excel Template

A break-even analysis excel template is a financial tool used in business and finance to determine the point at which a company’s revenue equals its total costs, resulting in neither profit nor loss. This template is created using Microsoft Excel, a popular spreadsheet software, and provides a structured framework for conducting break-even analysis.


Break-even analysis is an essential aspect of financial planning in organizations, enabling decision-makers to assess the profitability and viability of a specific product, service, or business venture. The excel template simplifies and streamlines the process of conducting break-even analysis, allowing users to input various financial parameters and quickly calculate the break-even point.

Key Components:

  1. Sales Revenue: The total income generated from the sale of goods or services. This is typically calculated by multiplying the unit price by the quantity sold.
  2. Variable Costs: Costs that vary in direct proportion to the volume of production or sales. Examples include raw materials, direct labor, and sales commissions.
  3. Fixed Costs: Costs that remain constant regardless of the volume of production or sales. These may include rent, salaries, utilities, and insurance.
  4. Contribution Margin: The difference between sales revenue and variable costs. This represents the amount available to cover fixed costs and contribute to profit.
  5. Break-Even Point: The level of sales or production at which total revenue equals total costs. At this point, there is neither profit nor loss.
  6. Break-Even Analysis: The process of determining the break-even point by analyzing the relationship between sales revenue, variable costs, and fixed costs.


  1. Financial Planning: The break-even analysis excel template aids in forecasting and budgeting by providing insights into the minimum sales volume required to cover costs and generate profit.
  2. Decision-Making: By using this template, organizations can evaluate the impact of price changes, cost variations, or new product introductions on the break-even point and profitability.
  3. Risk Assessment: Understanding the break-even point helps assess the financial risk associated with a business venture or project, enabling informed decision-making.
  4. Sensitivity Analysis: The template allows users to perform sensitivity analysis by altering key inputs, such as selling price, variable costs, or fixed costs, to assess the potential impact on the break-even point and profitability.
  5. Visualization: Excel’s graphical capabilities enable the presentation of break-even analysis results in the form of charts and graphs, offering visual clarity to stakeholders involved.


To utilize the break-even analysis excel template effectively, users should follow these steps:

  1. Enter the unit selling price of the product or service and the total fixed costs in the designated cells.
  2. Input the variable costs per unit and the expected sales volume.
  3. The template automatically calculates the contribution margin, break-even point, and profit or loss at the given sales volume.
  4. Modify the input values to perform sensitivity analysis and evaluate different scenarios.
  5. Utilize the charting features of Excel to visualize the break-even analysis results and facilitate communication with stakeholders.

In summary, a break-even analysis excel template is a valuable financial tool used to evaluate the minimum sales volume required for a business to cover costs and achieve a break-even point. Excel’s versatility and the template’s structure simplify the process, enabling accurate financial planning, risk assessment, and informed decision-making in the realm of finance and business.

Note: It is essential to understand that break-even analysis is just one aspect of broader financial analysis and should not be used in isolation to assess the overall financial health and performance of a company.