microsoft excel break even analysis template

Summary - Provides a month-by-month overview of your income and expenses by category. When you enter the Amounts (positive and negative) of each transaction, the sheet is designed to automatically calculate your running balance. Receipts can be attached right in the spreadsheet, and the Memo field covers any additional information. Each transaction is marked as Expense, Income, or Transfer, and categorized for easier tracking. Register - this is your complete register of all transactions, listing not only dates and what Account type the transaction was drawn on, but also the payee and check number when applicable. The income and expense tracker template above includes four worksheets: It also allows you to enter more information and categorize transactions, so you can get a fuller picture of exactly where your money is going and whether enough of it is sticking around.

If you don't have any expenses, bookmark this page, and come back when you move out of your parents' house.Īn income and expense tracker works similarly to a checkbook ledger, only this template is more robust, allowing you to track your income and expenses across multiple accounts, not just checking. But tracking your finances is a good way to keep them in order and get a handle on your spending, while making sure you can plan for recurring expenses. It's easier than ever to spend money without thinking about it, thanks to credit cards, instant digital payments, online ordering, and that restaurant in town with the good food, you know the one. For instance, you can calculate a monthly, weekly, or even daily break-even analysis to give your sales team a goal to aim for.ĭo you need help completing your break-even analysis? Connect with a SCORE mentor online or in your community today.If you have any expenses, an expense tracker template like this one can record your transactions and help you organize your finances. For instance, if you add another employee to the payroll, how many extra sales dollars will be needed to recoup that additional expense? If you borrow money, how much will be needed to cover the monthly principal and interest payments?Ī break-even analysis can also be used as a motivational tool. In this situation, a break-even analysis can help you calculate how different scenarios might play out financially. Existing businesses can benefit from a break-even analysis, too.

If your break-even analysis shows that it will take longer, you need to revisit your costs and pricing strategy so you can increase your margins and break even in a reasonable amount of time. In general, you should aim to break even in six to 18 months after launching your business. This will help you plan the amount of startup capital you’ll need and determine how long that capital will need to last. Financing sources will want to see when you expect to break even so they know when your business will become profitable.īut even if you’re not seeking outside financing, you should know when your business is going to break even. When Should You Use a Break-Even Analysis?Ī break-even analysis is a critical part of the financial projections in the business plan for a new business.

To use this break-even analysis template, gather information about your business’s fixed and variable costs, as well as your 12-month sales forecast. Your business is “breaking even”-not making a profit but not losing money, either.Īfter the break-even point, any additional sales will generate profits. What is a break-even analysis? The break-even point is the point when your business’s total revenues equal its total expenses.

Microsoft excel break even analysis template