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Breakeven Analysis Applications and Uses

Finding break even point of a product or service is an essential tool in choosing the best price per unit of a product and also helping to determine projected sales. Break even analysis can used for a number of different applications.

Breakeven Analysis Education and Training

In business accounting, breaking even is the point where the amount of costs are equal to the amount of revenue a company brings in. This creates a breakeven point where there are no profits or losses to report.

Break-even Analysis Key Terms

A break-even analysis helps business owners calculate the amount of product they must sell at a given price in order to break even, or cover all their costs. Having a break-even analysis performed, or performing it yourself, can also help you find better price points for various production costs.

Breakeven Analysis | SBA.gov

Breakeven Analysis: How to Know When You Can Expect a Profit. Breakeven analysis is used to determine when your business will be able to cover all its ...

Break-even (economics) - Wikipedia, the free encyclopedia

[edit]. By inserting different prices into the formula, you will obtain a number of break-even points, one for each possible ...

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How to Perform a Break-Even Analysis | Inc.com

Dec 15, 2010 ... A break-even analysis is a key part of any good business plan. It can also be helpful even before you decide to write a business plan, when ...

Break-Even Analysis Definition | Investopedia

An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is ...

Break-Even Calculator | Bplans

Break-Even Analysis is an expected component of most business plans, especially for start-up companies. This calculator shows how much revenue you need to ...

Break-Even Analysis

The following JavaScript calculates the break-even point for a firm based on the information you provide. A firm's break-even point occurs when at a point where ...

How to Do Breakeven Analysis - Entrepreneurs - About.com

If you can accurately forecast your costs and sales, conducting a breakeven analysis is a matter of simple math. A company has broken even when its total sales ...

Break-Even Analysis Definition | Small Business Encyclopedia ...

One useful tool in tracking your business's cash flow is a break-even analysis. It's a fairly simple calculation and can prove very helpful in deciding whether to ...

How to Do Break Even Analysis: 6 Steps (with Pictures) - wikiHow

How to Do Break Even Analysis. Break-even analysis is a very useful cost accounting technique. It is part of a larger analytical model called cost-volume- profit ...

Breakeven Analysis


Breakeven analysis is a tool used to calculate the number of products you will need to sell to breakeven or recover the variable and fixed costs associated with creating your product. In addition to the fixed and variable costs associated with production, breaking even is highly dependent upon the product’s price per unit and project sales of the product.

Not only is performing break even analysis useful in identifying the point at which you can start to generate a profit, but it is also helpful in identifying appropriate price points and production budgets for your product. Consider the following resources to help you perform a break even analysis for your business:

1. Talk to an accountant about breakeven analysis.

2. Get Internet assistance in finding the breakeven point for your business.

3. Evaluate usefulness of accounting software to conduct analysis of breakeven point.

Get break even basics

Turning a profit is the goal of most business owners. A breakeven analysis is a great tool to help you forecast profits based on possible product costs and unit prices. Finding break even point is a key factor in most business plans because without the analysis it is difficult to identify how you can attain profitability.

Use online breakeven analysis calculators

Breakeven analysis is a widely used accounting formula. Break even calculators can be used to perform what if scenarios and help you evaluate how previous year fixed and variable costs and unit prices has affected or will affect your current year break even point. You can find various online resources to help you quickly determine your company breakeven point.
Case Western Reserve University offers an interactive online breakeven analysis calculator. KJE Computer Solutions has an online break even analysis calculator designed to help you quickly learn the number of units you will need to produce to reach a profit.

Download accounting software for breakeven analysis

Break even analysis software provides businesses with detailed instructions on how to obtain breakeven point and analyze their progress in attaining a profit. Breakeven point software includes easy-to-follow reports doe novice to intermediate users.
DIY Management Consulting sells a break-even analysis tool designed to help businesses in performing break even analysis. downloadsoftware4free.com offers a downloadable break-even analysis tool specially designed for small business owners.
  • It is a good idea to perform two break even analyses. One breakeven analysis should use per-unit sales and costs assumptions while the other analysis should use break even figures derived from actual sales and profits forecasts.