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How to calculate the break-even point in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2/(B2-C2)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Fixed Costs | Price/Unit | Variable Cost/Unit | Break-Even Units |
| 10000 | 50 | 30 | |
| 5000 | 25 | 10 | |
| 20000 | 100 | 60 | |
| 8000 | 40 | 20 |
=A2/(B2-C2)→500
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Step by step
- 1Set up three columns: Fixed Costs (A), Selling Price per Unit (B), and Variable Cost per Unit (C).
- 2In the Break-Even Units column, enter =A2/(B2-C2). The denominator (B2-C2) is the contribution margin per unit.
- 3Optionally, calculate Break-Even Revenue by multiplying the result by the selling price: =(A2/(B2-C2))*B2.
Tips
- Use CEILING(A2/(B2-C2),1) to round up to the nearest whole unit, since you cannot sell a fraction of a physical product.
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Frequently asked
What if my variable costs change at different production volumes?
This basic formula assumes constant variable cost. For stepped costs, use a data table or scenario analysis with different variable cost values.
How do I calculate break-even in dollars (revenue) instead of units?
Use: =A2/(1-(C2/B2)), where the term in parentheses is the contribution margin ratio.
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