Break Even Analysis Excel: How to’s and Why’s

Posted by Wilbur Omar Chua on September 28th, 2021

What is the break even analysis? The break even analysis is computation of how much sales you need to have to cover your costs in such a way where you have no losses or profits, which is in common terms, breaking even. The way to check for this is when your total revenues or total inflows is equal to your total expenses.

The break even analysis Excel is definitely a way to make it easier to list down (and compute) all the outflows you have and determine the inflows needed to break even. The Break even analysis Excel also helps you understand how many units you need to sell (at what price) at a given timeline before you reach that break even point. In this article we will discuss all these, and provide a break even analysis excel template you can use as well. A business definitely needs this to assess their risk as well, by using the break even analysis Excel, to know if they can generate enough demand to at least break even.