Breakeven Worksheet – By Gross Profit Margin
How much do you need to sell to breakeven – on an individual expense (such as marketing), on a monthly basis, or for the year? Well, that depends largely on your gross profit margin. Use this simple worksheet to calculate a variety of breakeven points, based on the gross profit margin in your small business.
This easy-to-use breakeven worksheet includes mathematical formulas, as well as a section you can use to fill out specific gross profit margins and breakeven numbers for your small business.
Jennifer Croft Comments
It can take some time and practice to get an accurate handle on the gross profit margin in your business. But once you nail down that percentage (the average amount you make on each sale, after you subtract cost of goods), it is like being given a super power. In seconds, you can apply your gross profit percentage to every decision you make. For example, if you know that the average gross profit margin in your small business is 80%, and you are thinking of renting office space for $1,500 per month, grab your calculator. Take $1,500, divide it by .8, and you instantly know that you’ll need to sell $1,875 worth of products and services every month to pay for that new office. It’s that simple!