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Margin of Safety Calculator

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

Your workbenchInputs are not stored

Result

Enter your values and run the tool to see your result.

What this tool does

Shows how far current revenue sits above break-even, in both amount and percentage. A low percentage means a small drop in sales pushes you into a loss.

How to use it

  1. Choose a period and enter actual revenue for it.
  2. Enter break-even revenue for the same period — the break-even calculator gives you this.
  3. Run it to get the margin of safety in amount and percent.

Worked example

Revenue 100,000 against break-even 70,000 gives a margin of safety of 30,000, or 30%. A 30% sales drop reaches break-even.

Calculation method

Margin of safetysales-breakeven
Safety margin(sales-breakeven)/sales*100

Frequently asked questions

The percentage is negative.
Actual revenue is below break-even, so you are already loss-making. The negative figure shows how much more revenue is needed, relative to current sales.
What percentage is safe?
It depends on industry and cost structure. Businesses with heavy fixed costs are more fragile at the same ratio. Compare to your own history rather than an absolute benchmark.

What this tool does not cover

Both figures must cover the same period and product mix. If the mix changes, break-even revenue changes too and must be recomputed.

References