{"id":195630,"date":"2025-01-28T01:00:43","date_gmt":"2025-01-28T09:00:43","guid":{"rendered":"https:\/\/www.nationalfunding.com\/blog\/?p=195630"},"modified":"2025-01-28T16:35:21","modified_gmt":"2025-01-29T00:35:21","slug":"break-even-analysis","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/","title":{"rendered":"What Is a Break-Even Analysis?"},"content":{"rendered":"<p><span data-contrast=\"auto\">A break-even analysis is a calculation to help a business discover how many units, items, or services you need to sell before your business starts making a profit. Break even analysis calculations are important for:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Creating a business plan and pitching for financing or investors.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Making product and pricing decisions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Evaluating investment opportunities for your existing business.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The difference between a break even analysis and a break even point is that the break even point is where your total revenue equals your total costs, so you come out exactly even with no loss or gain, and the break even analysis is the calculation to find this data point.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Both matter because once you know how to calculate your break even point using the break even analysis formula, you can begin controlling your profitability, allowing you to expand your business, attract investors, and know when you\u2019ll have enough money to replace or upgrade equipment.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Below, you\u2019ll learn how to do a break even analysis to find your break even point, when these items are important for making business decisions, and how to set up a spreadsheet in excel with step-by-step instructions for creating a break even point calculator.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"auto\">How to Do a Break Even Analysis<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:360,&quot;335559739&quot;:120}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">A break even analysis finds the break even point where you have sold enough units to cover all business costs so that anything above this point adds to your profit. Here is the formula to calculate it:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Break Even Point (BEP) = Total Fixed Costs \/ Gross Profit per Unit (GPU)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Here is the 3-step process to do a break even analysis:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Gather your business data.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Calculate your Gross Profit per Unit.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Calculate your Break Even Point.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">Now that you have the formula and steps, here\u2019s where to find the information and how to modify the formula to match your specific situation. At the end of the post, we share how to build a break even analysis calculator if you want to quickly and easily calculate your break even point.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Gather Your Business Data<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Start by gathering the following data to do a break even analysis.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Price per Unit: This is the amount you charge for each item\/service you sell or plan to sell.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Cost per Unit: For new business plans, sum up the expenses directly linked to the thing you sell, like raw materials or manufacturing labor costs. Then divide this by the total number of units you plan to sell. If you have historical financial records, divide <\/span><a href=\"https:\/\/www.nationalfunding.com\/blog\/what-is-cost-of-goods-sold\/\"><span data-contrast=\"none\">Cost of Goods Sold<\/span><\/a><span data-contrast=\"auto\"> from your income statement by total units sold for the year.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Total Fixed Costs:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Use all your business expenses that aren\u2019t directly linked to your cost of goods sold when doing a break even analysis for your entire business, like when you are creating a business plan. For existing businesses, this would be the sum of all lines on your income statement beneath the Cost of Goods Sold line.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">When doing a break even analysis for an investment, total fixed costs will be the new costs directly related to the investment. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Calculate Your Gross Profit per Unit<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Once you have your data, calculate the Gross Profit per Unit (also known as the contribution margin), so you can figure out how many units you need to sell to cover the rest of your expenses.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Gross Profit per Unit (GPU) = Price per Unit &#8211; Cost per Unit<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Calculate Your Break Even Point<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">The final step in a break even analysis is to use this formula to find the break even point, which is the point where each additional unit you sell adds to profit.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Break Even Point (BEP) = Total Fixed Costs \/ Gross Profit per Unit (GPU)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Once you find the BEP, you\u2019ll know how many units or services you need to sell to \u201cbreak even,\u201d or get to a net profit of $0. Anything above the break even point adds to your profit. This is why it is an important analysis to complete in order to make product and pricing decisions, as well as why it\u2019s important to include in your business plans when you\u2019re applying for <\/span><a href=\"https:\/\/www.nationalfunding.com\/small-business-loans\/\"><span data-contrast=\"none\">small business loans<\/span><\/a><span data-contrast=\"auto\"> or attracting investors.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"auto\">When a Break Even Analysis Is Important<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:360,&quot;335559739&quot;:120}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Because a break even analysis shows the point where your business or investment starts to exceed total cost and become profitable, it\u2019s an important analysis for 5 key events:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Creating a business plan and pitching for financing or investors<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Making product and pricing decisions<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Evaluating investment opportunities for your existing business<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Knowing which parts of your operations impact profitability, so you can optimize your costs and expenses (also known as a sensitivity analysis)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Having a margin of safety (the difference between your break even point and additional sales, which gives you a financial safety net), so you can modify your sales and marketing strategies over the course of time to keep your business profitable<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">Here\u2019s how this applies to different situations, as well as scenarios you may experience as a business owner.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Creating a Business Plan and Pitching for Financing<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Whether you\u2019re pitching private investors, asking friends and family for startup funds, or seeking a bank loan, a break even analysis in your business plan is important to show potential financing providers the point where you start to turn a profit (and prove that this point is achievable).\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">An example would be for a new bike shop that needs to sell 10,000 bicycles each year to break even. They need to match this number with market data to show that it is possible to exceed this break even point.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If there are 20,000 people in the shop\u2019s town, it would be nearly impossible to sell 10,000 bicycles every year, since the average lifespan of a bicycle is much more than two years. Unless their plan includes additional sales channels like a significant e-commerce presence, they would be unlikely to turn a profit.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Making Product and Pricing Decisions<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">A break even analysis can help you compare different product and pricing options, like creating a business plan for a pasta food truck and needing to decide between noodle and sauce options for the first dishes.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The cost of the food truck, labor, cooking utensils, etc. remains the same, but you have to decide between providing a pricy bucatini bolognese or a simple capellini marinara.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The bolognese requires more ingredients and more steps to cook, so the cost would be higher per dish. But since the bolognese sauce has meat, you can charge more. A break even analysis helps you understand when you\u2019ll start turning a profit for each scenario:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<table data-tablestyle=\"Custom\" data-tablelook=\"0\" aria-rowcount=\"6\">\n<tbody>\n<tr aria-rowindex=\"1\">\n<td data-celllook=\"4369\"><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Bucatini Bolognese\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">Capellini Marinara<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"2\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Price Per Plate<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$14<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">$9<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"3\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Cost Per Plate<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$5<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">$2.5<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"4\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Gross Profit Per Plate<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$9<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">$6.5<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"5\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Total Fixed Costs<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$200,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">$200,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"6\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Break Even Point<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a022,300<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">30,800<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">You will need to sell about 38% more plates of marinara over the bolognese to break even, so if your market is heavily skewed with meat eaters, the bolognese is an easy choice given the beefy sauce. As customers ask which one they should choose, you know it\u2019s a good financial move to push the bolognese more heavily.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Most businesses don\u2019t sell a single product though, so you can do a break even analysis for a mix of products by using a percentage for each item\u2019s gross profit per unit.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you do a market research survey for the food truck above and find that 40% of the market would order the marinara, here\u2019s how your break even analysis will work with the break even point formula modified for a mix of products instead of a single item:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">BEP = Total Fixed Costs \/ (Percentage 1 x GPU for Product 1 + Percentage 2 x GPU for Product 2)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">BEP = $200,000 \/ (60% x $9 + 40% x $6.5) = 25,000<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">If you sell both dishes where 60% are bucatini bolognese and 40% are capellini marinara, you need to sell 25,000 plates total to break even vs 22,300 if you only sold bucatini or 30,800 selling just the marinara.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Evaluating Investment Opportunities for Your Existing Business<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Break even analyses are also important to make sure you can cover the costs of a new investment, especially if you\u2019re applying for a business loan. This shows the lender you can pay them back.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If your Italian food truck from above gets rave reviews on one of the sauces, you may decide to bottle it, as there is demand. Now you go to market and get an initial deal with the local grocery chain for 1,000 bottles per month.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This is when you do a break even analysis to find out if it\u2019s enough to cover the $10,000 of personal or business savings you\u2019ll use for labor, rent, and other expenses, plus the <\/span><a href=\"https:\/\/www.nationalfunding.com\/equipment-leasing\/\"><span data-contrast=\"none\">equipment financing loan<\/span><\/a><span data-contrast=\"auto\"> (we\u2019ll use $50,000 for this example) that you\u2019ll need to begin production:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<table data-tablestyle=\"Custom\" data-tablelook=\"0\" aria-rowcount=\"6\">\n<tbody>\n<tr aria-rowindex=\"1\">\n<td data-celllook=\"4369\"><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Pasta Sauce<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"2\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Price Per Bottle<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$4<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"3\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Cost Per Bottle<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"4\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Gross Profit Per Bottle<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"5\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Total Fixed Costs (Personal Investment + Equipment Loan)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$60,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"6\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Break Even Point<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a030,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">Since the grocery chain promised to order 1,000 bottles per month and you need to sell 30,000 bottles to break even on the investment, it will take 2.5 years before you start to make a profit.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you don\u2019t need the profit to live on during this time and don\u2019t have to repay the full loan beforehand, this might be an option. But a better idea would be to get additional customer commitments or cost reductions before locking in the loan.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To decide what\u2019s best, do a sensitivity analysis to see how changes in your numbers impact the break even point, like how cutting $5,000 with cheaper labor and rent compares to charging an extra quarter per bottle. Here\u2019s how this would look compared to your original break even analysis:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<table data-tablestyle=\"Custom\" data-tablelook=\"0\" aria-rowcount=\"6\">\n<tbody>\n<tr aria-rowindex=\"1\">\n<td data-celllook=\"4369\"><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Original<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Lower Fixed Cost<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Higher Price<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"2\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Price Per Bottle<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$4<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$4<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$4.25<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"3\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Cost Per Bottle<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"4\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Gross Profit Per Bottle<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$2.25<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"5\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Total Fixed Costs (Personal Investment + Equipment Loan)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$60,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$55,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0$60,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"6\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a0Break Even Point<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">\u00a030,000<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">27,500<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">26,667<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">The higher price gives you the lowest break even point of the 3 options. If customers will pay this higher price, you\u2019ll be better off than trying to cut fixed costs.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"auto\">How to Create a Break Even Analysis Calculator<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:360,&quot;335559739&quot;:120}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">To create a break even analysis calculator, you\u2019ll need a spreadsheet software system like Excel or Google Sheets. We\u2019re going to use Excel for this example.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Start by entering your data point labels in column A and enter the values in column B like in this example:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-208347\" src=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/1.png\" alt=\"\" width=\"269\" height=\"227\" srcset=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/1.png 269w, https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/1-190x160.png 190w\" sizes=\"auto, (max-width: 269px) 100vw, 269px\" \/><\/p>\n<p><span data-contrast=\"auto\">The formulas for cells B4, B9, and B10 are in the table below. Make sure to adjust the excel formula for Total Fixed Costs if you have more or fewer fixed costs:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<table data-tablestyle=\"Custom\" data-tablelook=\"0\" aria-rowcount=\"4\">\n<tbody>\n<tr aria-rowindex=\"1\">\n<td data-celllook=\"4369\"><b><span data-contrast=\"auto\">Data Point<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><b><span data-contrast=\"auto\">General Formula<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><b><span data-contrast=\"auto\">Excel Formula<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"2\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Gross Profit per Unit (GPU)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Price per Unit &#8211; Cost per Unit<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">=B2-B3<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"3\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Total Fixed Costs<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Sum of all fixed costs<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">=sum(B6:B8)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"4\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Break Even Point (Units)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Total Fixed Costs \/ GPU<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">=B9\/B4<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Step-by-Step Instructions for a Break Even Chart in Excel<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Now that you know your break even point, you can add visual appeal to any presentation by making a break even chart in excel that shows how your profit grows as you continue to sell more units.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Start by creating a 2-column table with Units in column A and Net Profit in column B. For units, start with fewer than your break even point and continue past it. Since the BEP is 450 in this example, let\u2019s use 50 unit steps from 50 to 900. The formula to calculate Net Profit is:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"9\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Net Profit = Units from column A x Gross Profit per Unit &#8211; Total Fixed Costs<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-ccp-props=\"{}\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-208349\" src=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/2-129x300.png\" alt=\"\" width=\"129\" height=\"300\" srcset=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/2-129x300.png 129w, https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/2-69x160.png 69w, https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/2-172x400.png 172w, https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/2.png 241w\" sizes=\"auto, (max-width: 129px) 100vw, 129px\" \/><\/span><\/p>\n<p><b><span data-contrast=\"auto\">Note<\/span><\/b><span data-contrast=\"auto\">: In the formula below, \u201cA14\u201d refers to the first value under Units in column A. $B$4 refers to the Gross Profit per Unit. $B$9 refers to the Total Fixed Costs value. The \u201c$\u201d in front of the column letter and row number tells Excel not to change which cell the formula refers to when you paste the formula into the cells under \u201cNet Profit.\u201d But since we do want Excel to use the different Unit values for A15, A16, etc., we don\u2019t use the \u201c$\u201d in front of that element.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<table data-tablestyle=\"Custom\" data-tablelook=\"0\" aria-rowcount=\"2\">\n<tbody>\n<tr aria-rowindex=\"1\">\n<td data-celllook=\"4369\"><b><span data-contrast=\"auto\">Data Point<\/span><\/b><span data-ccp-props=\"{&quot;134245417&quot;:false,&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"4369\"><b><span data-contrast=\"auto\">Excel Formulas<\/span><\/b><span data-ccp-props=\"{&quot;134245417&quot;:false,&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"2\">\n<td data-celllook=\"4369\"><span data-contrast=\"auto\">Net Profit<\/span><span data-ccp-props=\"{&quot;134245417&quot;:false,&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<td data-celllook=\"69905\"><span data-contrast=\"auto\">=A14*$B$4-$B$9<\/span><span data-ccp-props=\"{&quot;134245417&quot;:false,&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span data-ccp-props=\"{&quot;335559685&quot;:720}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Once you have the table created, follow these steps to create a break even chart highlighting your BEP. Depending on your version of Excel, the images might appear slightly different:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li><span data-contrast=\"auto\">Choose the Insert Menu &gt; Chart &gt; Line<\/span><\/li>\n<li>Choose Select Data from the Chart Design menu<\/li>\n<li>Click in the Chart Data Range box<\/li>\n<li>Highlight \u201cNet Profit\u201d and the numbers underneath<\/li>\n<li>Click in the Horizontal (Category) axis labels box<\/li>\n<li>Highlight the numbers under \u201cUnits\u201d (don\u2019t highlight the word \u201cUnits\u201d)<\/li>\n<li>Click OK. Then your chart should look like this:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-208357\" src=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/Picture11-300x181.png\" alt=\"\" width=\"300\" height=\"181\" srcset=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/Picture11-300x181.png 300w, https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/Picture11-265x160.png 265w, https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2024\/06\/Picture11.png 447w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/li>\n<\/ol>\n<p><span data-ccp-props=\"{&quot;335559685&quot;:1440}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Bonus Tip<\/span><\/b><span data-contrast=\"auto\">: If your chart has a \u201c$-\u201d instead of \u201c$0.00,\u201d highlight the numbers under \u201cNet Profit\u201d in your spreadsheet and change the number format to \u201cCurrency.\u201d<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720}\">\u00a0<\/span><\/p>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><span data-contrast=\"auto\">Click on \u201cNet Profit\u201d in the chart. Then double click to change it to \u201cBreak Even Chart (Net Profit by Total Units).\u201d<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\">Right click on a number in the X-axis and choose \u201cFormat Axis.\u201d Click directly on the number, not in the white space between numbers. The menu will pop up to the right of your spreadsheet.<\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><span data-contrast=\"auto\">Under \u201cAxis position,\u201d choose \u201cOn tick marks.\u201d<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><span data-contrast=\"auto\">Under \u201cTick Marks\u201d change \u201cMajor type\u201d to \u201cCross.\u201d<\/span><\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\">Right click on the blue line and choose Format Data Series<\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\">Under \u201cMarker Options,\u201d choose the \u201cBuilt-in\u201d type and size you prefer<\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\">Right click on your break even point on the line where it crosses the X-axis and choose \u201cFormat Data Point\u201d<\/li>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\">Under \u201cMarker Options,\u201d change the size to 10. Under \u201cFill,\u201d change the color to green<\/li>\n<\/ol>\n<p><span data-ccp-props=\"{&quot;335559685&quot;:1440}\">\u00a0<\/span><span data-contrast=\"auto\">You now have a break even chart with the break even point highlighted and ready for any business plan or presentation!<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">By doing a break even analysis for new business plans and for potential investors, you\u2019ll know how much you need to sell to cover all the costs in your business. You can match this number with market research to attract investors and prove to creditors how the market demand exceeds your break even point. You can also show them how soon you\u2019ll start to make a handsome profit.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a break-even analysis? This formula will help you determine how many sales you need to make a profit. Here&#8217;s how.<\/p>\n","protected":false},"author":38,"featured_media":195629,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[72,67,66,100],"class_list":["post-195630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-health","tag-business-budget","tag-business-financing","tag-business-growth","tag-retail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is a Break-Even Analysis and Why Is It Important?<\/title>\n<meta name=\"description\" content=\"Here\u2019s how to do a break even analysis and when it is important to do one, with step-by-step instructions to make a break even chart in excel as a bonus.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is a Break-Even Analysis and Why Is It Important?\" \/>\n<meta property=\"og:description\" content=\"Here\u2019s how to do a break even analysis and when it is important to do one, with step-by-step instructions to make a break even chart in excel as a bonus.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.nationalfunding.com\/blog\/blog\/wp-json\/wp\/v2\/posts\/195630\" \/>\n<meta property=\"og:site_name\" content=\"The Bottom Line by National Funding\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/national.funding\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-28T09:00:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-29T00:35:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1439\" \/>\n\t<meta property=\"og:image:height\" content=\"518\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kelly Hillock\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NationalFunding\" \/>\n<meta name=\"twitter:site\" content=\"@NationalFunding\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kelly Hillock\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/\",\"url\":\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/\",\"name\":\"What Is a Break-Even Analysis and Why Is It Important?\",\"isPartOf\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg\",\"datePublished\":\"2025-01-28T09:00:43+00:00\",\"dateModified\":\"2025-01-29T00:35:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/bc06f44d4c81138ad3f536fee0606768\"},\"description\":\"Here\u2019s how to do a break even analysis and when it is important to do one, with step-by-step instructions to make a break even chart in excel as a bonus.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#primaryimage\",\"url\":\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg\",\"contentUrl\":\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg\",\"width\":1439,\"height\":518},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.nationalfunding.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Is a Break-Even Analysis?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#website\",\"url\":\"https:\/\/www.nationalfunding.com\/blog\/\",\"name\":\"The Bottom Line by National Funding\",\"description\":\"Read National Funding&#039;s small business blog for tips and suggestions on how to grow your business by focusing on different aspects of business operations.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.nationalfunding.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/bc06f44d4c81138ad3f536fee0606768\",\"name\":\"Kelly Hillock\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f9731694c10dd48ef5c8395aacfc3923cb3079b712f05464ba6d33a85395065b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f9731694c10dd48ef5c8395aacfc3923cb3079b712f05464ba6d33a85395065b?s=96&d=mm&r=g\",\"caption\":\"Kelly Hillock\"},\"description\":\"Kelly Hillock is the content marketing manager for National Funding, where she writes and edits articles for small business owners. Kelly has over eight years' experience in copywriting across a variety of industries, focusing on entrepreneurship and finance. She has a Bachelor of Arts in journalism from San Diego State University.\",\"url\":\"https:\/\/www.nationalfunding.com\/blog\/author\/khillocknationalfunding-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Is a Break-Even Analysis and Why Is It Important?","description":"Here\u2019s how to do a break even analysis and when it is important to do one, with step-by-step instructions to make a break even chart in excel as a bonus.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/","og_locale":"en_US","og_type":"article","og_title":"What Is a Break-Even Analysis and Why Is It Important?","og_description":"Here\u2019s how to do a break even analysis and when it is important to do one, with step-by-step instructions to make a break even chart in excel as a bonus.","og_url":"https:\/\/www.nationalfunding.com\/blog\/blog\/wp-json\/wp\/v2\/posts\/195630","og_site_name":"The Bottom Line by National Funding","article_publisher":"https:\/\/www.facebook.com\/national.funding\/","article_published_time":"2025-01-28T09:00:43+00:00","article_modified_time":"2025-01-29T00:35:21+00:00","og_image":[{"width":1439,"height":518,"url":"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg","type":"image\/jpeg"}],"author":"Kelly Hillock","twitter_card":"summary_large_image","twitter_creator":"@NationalFunding","twitter_site":"@NationalFunding","twitter_misc":{"Written by":"Kelly Hillock","Est. reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/","url":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/","name":"What Is a Break-Even Analysis and Why Is It Important?","isPartOf":{"@id":"https:\/\/www.nationalfunding.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#primaryimage"},"image":{"@id":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#primaryimage"},"thumbnailUrl":"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg","datePublished":"2025-01-28T09:00:43+00:00","dateModified":"2025-01-29T00:35:21+00:00","author":{"@id":"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/bc06f44d4c81138ad3f536fee0606768"},"description":"Here\u2019s how to do a break even analysis and when it is important to do one, with step-by-step instructions to make a break even chart in excel as a bonus.","breadcrumb":{"@id":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#primaryimage","url":"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg","contentUrl":"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/skilledmalerestorerreadi_733855-e1573748130577.jpg","width":1439,"height":518},{"@type":"BreadcrumbList","@id":"https:\/\/www.nationalfunding.com\/blog\/break-even-analysis\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.nationalfunding.com\/blog\/"},{"@type":"ListItem","position":2,"name":"What Is a Break-Even Analysis?"}]},{"@type":"WebSite","@id":"https:\/\/www.nationalfunding.com\/blog\/#website","url":"https:\/\/www.nationalfunding.com\/blog\/","name":"The Bottom Line by National Funding","description":"Read National Funding&#039;s small business blog for tips and suggestions on how to grow your business by focusing on different aspects of business operations.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.nationalfunding.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/bc06f44d4c81138ad3f536fee0606768","name":"Kelly Hillock","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f9731694c10dd48ef5c8395aacfc3923cb3079b712f05464ba6d33a85395065b?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f9731694c10dd48ef5c8395aacfc3923cb3079b712f05464ba6d33a85395065b?s=96&d=mm&r=g","caption":"Kelly Hillock"},"description":"Kelly Hillock is the content marketing manager for National Funding, where she writes and edits articles for small business owners. Kelly has over eight years' experience in copywriting across a variety of industries, focusing on entrepreneurship and finance. She has a Bachelor of Arts in journalism from San Diego State University.","url":"https:\/\/www.nationalfunding.com\/blog\/author\/khillocknationalfunding-com\/"}]}},"_links":{"self":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts\/195630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/comments?post=195630"}],"version-history":[{"count":8,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts\/195630\/revisions"}],"predecessor-version":[{"id":208359,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts\/195630\/revisions\/208359"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/media\/195629"}],"wp:attachment":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/media?parent=195630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/categories?post=195630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/tags?post=195630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}