Startup Breakeven Time (Profibility Period) Calculator

Calculate when will your business will be breakeven

Breakeven Time (Months)

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Breakeven Time Calculator

Knowing a point in time when your business will breakeven is good for planning.


What is Breakeven?

Breakeven as a point in business when income is equal to expenditure. At this point, the business does not experience any loss or gain. When drawn on a graph paper, the graph for expenses and that for income should cross at a point. That point where the two meet is the breakeven point.


Details required to calculate breakeven time

The fields to fill out in this calculator are five. To begin with, you will need to fill in your business’ revenue. Revenue is the income from your business. You will also enter the growth rate, margin, expenses and expense increase rate. These five factors are enough for the calculator to give you accurate results. There are no signs to be entered. This tool does not assume that you know the formula. You might know it but you could be tired to concentrate on the signs. To solve you the hassle, you do not need to enter any thought provoking information.


Benefits of calculating breakeven time

The major benefit of all time is being able to plan for the future of your business. This enables you to make prediction about changes in the price of products. You will then know the effect depending on the changes. In case it leads to negatives, you will know how to handle that before the time comes.

Enables you to measure losses and profits. As a business person in the ecommerce industry, you should expect any change. You will make profits as some point and losses. You are the entrepreneur and you should bear all the risk. Calculating breakeven time helps you measure the expected profit and losses. This gives you an idea of how to deal with the losses.


Advantages of breakeven time calculator

This calculator is less cumbersome. Can you imagine you will not enter any signs? There are five different fields to enter. You can get lost on the way if signs should be entered too. You may not tell which sign goes where. Therefore, this calculator saves your life. Enter the basic information and leave the calculator to work its magic.

It gives accurate data. Data is not prone to change or interference. The answer displayed on your right hand side depends with the details entered. The answer is not exposed to manipulation. The only thing that can change the answer is a change in the data entered on the fields.


Conclusion

If business people were able to foresee their business performance, life would be different. Entrepreneurs would avoid making losses before getting to them. That means that no losses would ever appear in business. This calculator is just a starting point. We should expect more a few years down the line. A few decades ago, you could not calculate the breakeven time. Now you can. Now you can make better plans for your business. This is possible because of this wonderful tool.