The breakeven analysis calculator allows you to examine some of the critical profit drivers of your business including- sales volume, average cost of production and the average sales price.
The calculation indicates the average number of units your business has to sell to cover set up costs (in a start up business), to cover fixed costs in an established business, or to achieve a desired profit level.
For information on using this calculator see below.
Fill in the required values based on the following information:
If you leave the profit input area at zero, the calculator will give an indication of how many units your business will need to sell to breakeven.
Breakeven calculation can be particularly useful if you are considering expanding your business by putting on extra staff or increasing production. Adding the cost of this into the start up or fixed costs input area will indicate the volume of sales that could be required to meet the cost of expansion. If you are looking at expanding, it is also worth considering how much extra working capital you will require particularly if your business offers sales on terms.
You can use the calculator to explore the effects of various changes to your business such as reducing fixed costs or increasing the average sale price per unit sold. Breakeven calculation can also be used over different time periods. To use the haircut example, you could work out the weekly fixed costs and the number of haircuts per week required to break even. This is useful in planning short-term sales targets for your business and staff.
By experimenting with different input values, you can use the calculator to indicate the effect of a rise or fall in the cost of production or the sales price. These factors along with sales volume combine to form some of the key drivers of business profitability.
NOTE: The calculator is provided for illustrative purposes only and the calculations are based on the accuracy of the information provided by you. The information about the calculators and the results of the calculations are necessarily general and are only intended as a guide. When deciding on what your business will do, many factors need to be considered, including your business' situation and financial position.
ANZ will not store the information provided in this calculator.