FINANCE TOOLS

Break-Even & Profitability Planner

Understand the revenue, margin, and cost structure required for your business to become profitable.

Go beyond the break-even number and identify financial levers available to improve performance.

Your Business

Enter your current financial information. Use annual figures and your current gross margin.
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Your expected or most recent annual revenue.
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Costs that generally remain regardless of sales volume, such as salaries, rent, insurance, and administrative expenses.
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Gross profit divided by revenue.
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Optional for break-even analysis. Required for Target Profit Planning below.

Your Results

Your estimated break-even position based on the information provided.
Break-Even Revenue —
Break-Even Gap —
Revenue Increase Required —
Estimated Operating Result —
Revenue for Target Profit —
Gross Margin Needed at Current Revenue —

What This Means

The break-even number is only the starting point. The more useful question is what management can do about it.
Enter your financial information above and select Calculate to see an interpretation of your results.

Scenario Analysis

Test how changes in revenue, gross margin, and fixed costs could affect profitability and break-even performance.
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pts
Example: 3 changes a 45% margin to 48%.
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Scenario Results

Scenario Revenue —
Scenario Gross Margin —
Scenario Fixed Costs —
Scenario Operating Profit —
Scenario Break-Even Revenue —
Change in Operating Profit —

Target Profit Planning

Break-even is the minimum. Use your target operating profit to determine what revenue, gross margin, or fixed-cost structure would be required to achieve the desired result.
Current Operating Result —
Target Operating Profit —
Profit Gap —

Three Paths to the Target

Revenue Required —

Gross Margin Required —

Maximum Fixed Costs —