📊 Build a Breakeven Dashboard in Excel



How to Adopt Usage-Based Pricing in the Age of AI

Usage-based pricing keeps coming up because AI products broke the old math. Usage swings month to month, value shows up in different places for different customers, and per-seat pricing stops matching what people actually get.

Maxio put together a free guide on exactly that. It covers whether usage-based pricing fits your business or would hurt it, how to pick a value metric customers will actually pay for, and how hybrid and tiered models keep revenue predictable. Three SaaS pricing experts, Ray Rike, Ben Murray, and Todd Gardner, walk through how they'd actually run a usage-based model.


Hey Reader,

The Break Even point is a dream destination for many companies.

It’s where your revenue finally matches your costs, and profitability is on the horizon.

Today, we're going to learn how to calculate your Break-even point and build a beautiful dynamic dashboard in Excel.


Most companies talk about break even like it is one number. It is not. I am going to show you how to calculate it and then build a dynamic dashboard in Excel that makes the answer impossible to miss.


There are a few ways to define this:

1️⃣ The point where your current month's revenue matches your current month's expenses.

2️⃣ The number of units you must sell in order to break even.

3️⃣ The amount of $$ sales you must generate to break even.

4️⃣ The amount of profit you must generate to recoup all costs since inception.

Each of these is based on the same question - when do you start to match your expenses with sales?

For this post, we’ll focus on the amount of units that you need to generate in order to break even.


Businesses typically have what’s known as Fixed Costs, and Variables Costs.

To calculate break even, the formula is fairly simple:
Break-Even Point = Fixed Cost / (Sales price - variable cost)

Here's an example:


Start by creating a table showcasing your total sales and total costs across different levels of units produced.


Add an Area chart for Total Costs and Total Sales as such.


Add a new series called “shading” equal to the minimum of sales and costs.

Make this white to hide the unwanted shading from your chart.


Add a scatterplot to the X and Y axis where break-even takes place.


Replace the scatterplot with a marker, and choose a custom picture.
Insert an arrow.


Add data labels to pull from a cell, and use a custom formula to pull in the break-even units and text.



Building this dashboard was a lot of fun for me...and I learned a few new things along the way!

Have you ever built a break-even dashboard?

Let me know your experience by replying to this email.

Till next time

Josh
Your CFO Guy


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Fractional CFO for Startups | Founder & CEO at Mighty Digits

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