Help Pricing and Breakeven Analysis

Pricing and Breakeven Analysis will determine the impact of a price change on your business. It calculates current breakeven points using revenue, variable cost, and fixed cost inputs. These are combined with estimates for price and sales volume variations to produce revenue and surplus (profit/loss) forecasts. The model determines the Optimum Pricing to maximize your surplus and can be applied to new or established businesses, product/service lines, or individual items. It is compact, easy to use, and requires minimal inputs. Outputs include Breakeven Charts for Current, Increased, Decreased, and Optimum pricing. Analysis determines the Optimum Price to maximize your business surplus, and the Revenue, Surplus, and Number of Sales are calculated for prices ranging from -50% to +50% of the current price.

This is the current version of our original Pricing and Breakeven Analysis, this is proven software providing real business value as evidenced by client feedback.

Pricing and Breakeven Analysisl will determine the impact of a price change on your business. It calculates current breakeven points using revenue, variable cost, and fixed cost inputs. These are combined with estimates for price and sales volume variations to produce revenue and surplus (profit/loss) forecasts. The model determines the Optimum Pricing to maximize your surplus and can be applied to new or established businesses, product/service lines, or individual items. It is compact, easy to use, and requires minimal inputs. Outputs include Breakeven Charts for Current, Increased, Decreased, and Optimum pricing. Analysis determines the Optimum Price to maximize your business surplus, and the Revenue, Surplus, and Number of Sales are calculated for prices ranging from -50% to +50% of the current price.

Pricing and Breakeven Analysis is an xlsx file developed with Microsoft Excel and will run on current versions of Microsoft Excel and most other spreadsheet applications. It is secure and safe, it does not include any macros or visual basic coding and cannot access your system in any way. In this format you can simply save the file with different file names to use with multiple entities or time frames. The software is divided into sheets accessible using the sheet tabs. All input is via unprotected blue input cells, protected cells contain formula and should not be changed.

You can Download Pricing and Breakeven Analysis free of charge for evaluation. In evaluation mode some functionality is restricted. To license your software and fully enable all functions you must purchase the appropriate license. If you have not already please Purchase a License to fully enable your software. For additional detail and help see please refer to Pricing and Breakeven Analysis.

Specific item help is also provided within the software via hyperlinks to related help information.

1. All input is on the Input Sheet. Click the sheet tabs to access. Blue cells allow input.
2. You can save the file with different file names to use with multiple businesses.

The Welcome sheet provides software and license details, Help and Purchase links and license details input. When you purchase a software license you will receive License Details by email. To license your software input your License Details into the blue cells at the bottom of the Welcome sheet and save the spreadsheet. Current license details are displayed in red.

Start here.

This section reviews the current performance of your business or product for a full year period. Inputs include Revenue, the level of expenses that vary with your sales (Variable Costs), and those that don't (Fixed Costs). Inputs do not have to be perfect but should reasonably reflect business operation. You can analyze a component of the business or a specific product by including values that apply only to the area under analysis. As an example we will analyze Acme Widgets producers of quality Widgets.

Input a name for the business. This appears as an identifier on the Output Sheets.

Input the Revenue generated by the business or product for the current year. If you are setting the price for a new product or service input your forecast sales for a year.

Select your Sales input as Price (average revenue per sale) or Num Sales (Number of Sales). This allows you to input your Sales breakdown directly as the average price per sale or the number of sales per year.

Input the average revenue per sale (Price) or the average number of sales (Num Sales).

Select your Expense input as Monetary or Percent. This allows you to input your Expenses directly in Monetary (Dollars, Pounds etc) or Percentage terms.

Variable Costs change with the volume of product or service you provide. These costs include materials, production, distribution, and transaction costs.

Fixed Costs are expenses which remain constant (up to a point) while the volume of sales vary. This includes administration, location, and finance costs.

Operating Surplus reflects the before tax operating profit/loss of the business. It is calculated as the Revenue less Variable Costs less Fixed Costs.

Current Breakeven Analysis applies your current performance input to determine breakeven points and the required revenue and number of sales for a desired surplus under current trading conditions.

This is the revenue required before any profit is generated by the business. If revenue is less than this the business will lose money for the period.

This is the number of sales required before any profit is generated by the business. If the number of sales is less than this the business will lose money for the period.

The Breakeven Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven is a loss.

You can input your desired surplus for a week, month, or year. The model will calculate the revenue and number of sales required to generate this surplus based on current pricing. This can be applied for budgeting and goal setting.

This is the revenue required to generate your desired surplus for the period.

Pricing Analysis allows you to test the impact of pricing changes. Input estimated changes in the number of sales for changes in price to test the impact on revenue and surplus.

Increased Average Price allows you to determine the revenue and surplus generated by an increased price. The ratio of price to number of sales is applied in extended pricing analysis. Select your Increased Average Price input as Units or Percent. This allows you to input directly in Units (Monetary and Number of Sales) or Percentage terms.

Input the amount of average price increase to test. This increase is relative to your current price. The ratio of price change to number of sales change will be applied in the extended pricing analysis. As a percentage this price increase should be no greater than 50%.

Input the estimated impact on the number of sales your price increase will have. Consider competitor and consumer reactions. The ratio of price change to number of sales change will be applied in the extended pricing analysis.

This is the revenue calculated from the increased price and corresponding number of sales.

This is the operating surplus (profit) based on the increased price and the corresponding number of sales. The Variable Cost applied is the Variable Cost per Unit produced as calculated from the current performance input.

The Breakeven Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven is a loss.

Decreased Average Price allows you to determine the revenue and surplus generated by a decreased price. The ratio of price to number of sales is applied in extended pricing analysis. Select your Decreased Average Price input as Units or Percent. This allows you to input directly in Units (Monetary and Number of Sales) or Percentage terms.

Input the amount of average price decrease to test. This decrease is relative to your current price. The ratio of price change to number of sales change will be applied in the extended pricing analysis. As a percentage this price decrease should be no greater than 50%.

Input the estimated impact on the number of sales your price decrease will have. Consider competitor and consumer reactions. The ratio of price change to number of sales change will be applied in the extended pricing analysis.

This is the revenue calculated from the decreased price and corresponding number of sales.

This is the operating surplus (profit) based on the decreased price and the corresponding number of sales. The Variable Cost applied is the Variable Cost per Unit produced as calculated from the current performance input.

The Breakeven Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven is a loss.

The Price Analysis Chart plots the Number of Sales, Revenue, and Surplus for each of the defined price settings, Current, Increased, and Decreased.

Extended Pricing Analysis projects outcomes for pricing from 50% less than current to 50% more than the current price. It applies the ratio of price to number of sales defined in the increased and decreased price analysis and calculates the optimum price. The optimum price provides the highest surplus (profit). This information is intended to indicate outcomes based on your inputs. These inputs should be regularly refined to ensure they remain current.

This is the price that will generate the highest surplus (profit).

This is the revenue calculated from the optimum price and the corresponding number of sales.

This is the operating surplus (profit) based on the optimum price and the corresponding number of sales. This surplus is based on Fixed Costs remaining constant and Variable Costs per Unit produced as calculated from the current performance input.

The Breakeven Chart plots the Revenue, Variable Cost, Fixed Cost, and Surplus against the Number of Sales for a year. The red line indicates total costs and the black line revenue. Where they cross is the breakeven point. The green area to the right of the breakeven point represents profit, the green area to the left of breakeven is a loss.

The Extended Price Analysis Chart plots the Number of Sales, Revenue, and Surplus projections for prices ranging from -50% to +50% of the Current price. It also identifies the current price setting and the Optimum price to maximize your surplus.

Breakeven tables are provided for Current, Increased, Decreased, and Optimum pricing. They provide calculations for the number of sales from 0 to double the input amount. These results are also represented in the Breakeven Charts.

Pricing and Breakeven Analysis is an xlsx file developed with Microsoft Excel and will run on current versions of Microsoft Excel and most other spreadsheet applications. It is secure and safe, it does not include any macros or visual basic coding and cannot access your system in any way. In this format you can simply save the file with different file names to use with multiple entities or time frames. The software is divided into sheets accessible using the sheet tabs. All input is via unprotected blue input cells, protected cells contain formula and should not be changed.

Click the required Download Pricing and Breakeven Analysis link to download and save your software file. If you download the Compressed Zip file unzip/uncompress the downloaded file and save the content .xlsx software file. If you download the .xlsx file simply save the .xlsx file. Open the .xlsx software file and follow the Instructions for Use. This software does not access or alter your system or system files in any way. To uninstall simply delete the saved files.

The specific suitability of this software must be independently assessed. Software is provided as is, use is entirely at the users risk, and use acknowledges that the developers and all associated parties are held harmless from any claims or losses relating to software provided.

For software support please refer to this Help and our Pricing and Breakeven Questions and Answers pages.

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