Breakeven Analysis in Excel

Our Excel training videos on KZbin cover formulas, functions and VBA. Useful for beginners as well as advanced learners. New upload every Thursday.
For details you can visit our website:
www.familycompu...
Breakeven analysis in Excel using the variables like contribution margin, fixed costs and variable cost is quick and easy.
A company is supposed to break even when the total expenses equals the total revenues. It can also be defined as the point where the net profit is zero, i. e. the company has neither made any profits nor incurred any loss.
We have also calculated the breakeven point using: break even point = fixed cost / contribution margin per unit.
A picture is worth a thousand words. We have created a line chart to show how you can visualize the breakeven point by plotting the sales unit per period and the net profit.
Get the book Excel 2016 Power Programming with VBA: amzn.to/2kDP35V
If you are from India you can get this book here: amzn.to/2jzJGqU

[@Dee4952]

What an amazing video I have used it to help with 2 presentations recently. Thank you so much.

[@Tierravsu]

Thank you so much! I have tried using a number of youtube videos to create a working break even chart. Your tutorial worked!!!

[@SiwonPaul]

This is helping me a lot. Plus this is how you teach finance.. explanation is excellent

[@Miltefar]

Thank you for your video! Very clear and thought through! Have a nice day!

[@wasimmulla66]

Thanks sir really your video was very helpful for me, God bless you...

[@NaimaZakaria]

One of the most useful video on youtube. thank you!

[@Exceltrainingvideos]

Glad that you found the video on 'Break-even Analysis' useful!

[@shankarud]

Amazing Sir.. Exactly what i needed... Thank You!!!

[@Exceltrainingvideos]

Glad it helped! Please share with your friends.

[@dextrogaming4316]

Sir in BEP formula Fixed cost is taken per year or per month?

[@Exceltrainingvideos]

Refer to the description and this link: www.exceltrainingvideos.com/breakeven-analysis/

[@mfsolutions]

Dinesh, I understand Break Even Analysis and was looking for a simple example for a friend. Your method is great EXCEPT Unfortunately you missed discussing Gross margin and Unit Contribution in your video. Furthermore, the choice of numbers for Gross Margin and Total variable costs means that total variable costs and gross margin are the same ($7500)... This could be easily fixed to make a great Excel video by 1. picking variable costs that result in a number that is not exactly half of revenues and 2. explaining the cells where you calculate Gross Margin. Thanks Greg

[@Exceltrainingvideos]

I expect people to study a few more things on their own!

[@IAMORALANDUS]

Excellent. I needed to review this Analysis, thank you kindly for your help.

[@olusolaolaitan9750]

Thank you so much. This tutorial is superb. Thanks greatly.

[@Dee4952]

Thank you for responding so quickly but I don't understand your comment but I'm after an excel formula? Many thanks :)

[@007rpbable]

Great help, many thanks Sir!

[@dianajohnson5067]

Excellent. Great presentation!

[@junminwu9380]

Thank you for the great video!

[@srinirooney3121]

thank you so much. you are really helpful

[@daniskicker]

How did you figure out the contribution per unit. This was not explained and I can't figure out that number??

[@tashifhanif2981]

Sales price. Per. Unit - total variable costs per unit

[@Star-vl7yk]

Can i ask, how can i find the fixed cost and variable cost? Is base on Manufacturing account or P&L?

[@Exceltrainingvideos]

This link will help: www.investopedia.com/ask/answers/032515/what-difference-between-variable-cost-and-fixed-cost-economics.asp

[@Star-vl7yk]

Thanks Dr Dinesh reply. But when we do for break even analysis, which cost should i refering for manufacturing industry. Is bases on Manufacturing account or bases on profit and loss account?

[@Star-vl7yk]

The variable cost and fixed cost that you show us, is base on average or current mth?

[@abdumalik90]

exellent explanation thanks it was very helpful to my coursework thanks a lot

[@odotmdot]

Thank you so much. I needed to use this today.

[@oceansmir]

Dear Dinesh, What is excel om/qm and how it can be downloaded and installed to excel.

[@LividLeon]

You have a simple detailed procedure you help me alot thank you sir thank you. I have thumbs up the video and subscribe to your channel.

[@Exceltrainingvideos]

LividLeon Thank you!

[@vviperellie]

I tried to use this template for products which has per unit cost less than 1 but the template doesn't calculate it correctly? Why is that?

[@jeniececollazo7033]

What if you have total sales price per unit and percentages how would you calculate break-even point units and dollars?

[@Exceltrainingvideos]

Accordingly.

[@vannguyenvn84]

Thank you so much sir. It is really useful :)

[@haroonazamuae]

That was a good tutorial.

[@leathedefinition]

Thank you !

[@shreyans7578]

Hi Dinesh, I am having a little trouble while keeping the value constant which calculating the Sales Volume analysis. Could u=you help me out with it?

[@mayurangunendran8672]

this helped me a lot #ThusanGivesAThumbsUp

[@pisethphornphal7394]

that so useful...

[@Dee4952]

Can you help me with a formula If x exceeds 50% of budget unit then production costs increase by 50%. Thank you

[@Exceltrainingvideos]

+Dee Jay dim x as long dim budget as long dim production_costs as long if x>budget+budget*0.5 then production_costs=production_costs+production_costs*0.5 end if

[@Exceltrainingvideos]

+Dee Jay Let's assume your budget value is in Range A2 and production cost is in B2 then your formula would be: =IF(A2>(A2*50%),(B2+(B2*50%)))

[@Dee4952]

+Dinesh Kumar Takyar Thank you so much :)

[@TheMinnieMouse02]

where did total variable costs per period came from?

[@denricstaana4697]

what is the formula for c15 pls

[@SmokeWater18]

(Total Sales Amount - Total VC Per Period) / Sales Volume Per Period

[@yg0072]

Thnx

[@synkyodero6928]

hi, would you mind helping me on a question

[@Exceltrainingvideos]

Yes. You can post your question right here in the comments section.