# Calculate Break-Even Analysis Point in Excel & Google Sheets

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*This tutorial demonstrates how to calculate a break-even point in Excel and Google Sheets.*

A break-even analysis tells you how many units you need to sell at the sales price to get a profit of **zero**. This happens when a business’s total cost is equal to its total revenue – the “break-even” point.

## Calculate Break-Even Point

Say you’ve set up a worksheet with the **number of units**, the **fixed expenses** (costs that occur regardless of how many units you sell), the **variable expenses** (per unit to produce/supply one unit), and finally, the **sale price**.

Net Profit = (Unit Price × Number of Units) – Fixed Expenses – (Variable Expenses × Number of Units)

For this example, **net profit** for the sale of **10** units is **$300** per unit x **10** units minus **$1,500** minus **$250** per unit x **10** units. If you sell **10** units as shown above, you have a loss of **$1,000**. To find the **break-event point**, find out how many units you need to sell for the net profit to be **zero**.

- With cell F3 (
*Net Profit*) selected, in the**Ribbon**, go to**Data > What-If Analysis > Goal Seek**.

- Set three values:

**Set cell**– This cell has to contain a formula and is the cell where the analysis sets to the target value. In this example, the formula in cell F3 calculates profit.**To value**– This is the**target value**for the**Set cell**. When finding the break-even point, always use a target value (i.e.,*Net Profit*) of**zero**.**By changing cell**– This is the variable cell. Here, Goal Seek finds the value at which the variable (number of units) sets the formula cell to the target value (i.e., results in zero profit).

- Click
**OK**to start the Goal Seek analysis. Since there are multiple variables, it may take a while!

- Once a solution is found, click
**OK**. In this example, the business breaks even when**30**units are sold.

## Calculate Break-Even Analysis Point in Google Sheets

In Google Sheets, you have to install the Goal Seek add-on. If you don’t already have this add-on installed, see: How to Add Goal Seek to Google Sheets.

- In the
**Menu**, go to**Add-ons > Goal Seek > Open**.

**Goal Seek**opens on the right side of the screen.**Set Cell**refers to the calculated value (here, F3). In the**To Value**field, type in the target value (**0**). Finally, set the variable cell. This cell (B3,*No of Units*) is where Goal Seek’s result appears.

- You can adjust the
**Options**to set the**maximum iterations**or the tolerance or**time limit**values.

- Click
**Solve**to run the analysis.

- Once a solution is found, a
**Goal Seek Complete**message pops up, displaying the result onscreen.