Usually, this indicator is expressed in quantitative or monetary units. In the economic sense, the break-even point is the point of an indicator of a critical situation when profits and losses are zero. At this point, the business can cover all its costs. The break-even point of a business is where the volume of production and volume of sales of goods (or services) sales are equal. In this post, we focus on how to use Excel to calculate Break-Even analysis. It occurs after incorporating all fixed and variable costs of running the operations of the business (source: Investopedia). How to calculate Break-even analysis in Excelīreak-even analysis is the study of what amount of sales or units sold, a business requires to meet all its expenses without considering the profits or losses. Other than the normal tabulations, Excel can help you in various business calculations, among other things being Break-Even analysis.
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