OPERATION OF THE BREAK-EVEN CALCULATOR
By changing 6 variables, the grid will update, showing 5 scenarios where Break-Even occurs. You can adjust any of the numbers in the gray cells:
- Loan/Investment amount
- Average number of visits per month
- Low number of visits that you want to consider in each scenario
- High number of visits
- Lowest price
- Highest price
Examples of the kinds of questions that can be asked:
- With an investment of $38,000
- let’s input a range of $20/visit to $100/visit;
- a range of 10 visits to 1000 visits. How long would it take to recover the investment with
- an average of 25 visits per month?
- How do the scenarios change if we change the investment to $25,000 and the price range between $45/visit and $100/visit?
- And what if we think we can manage 30 visits per month? How much time will that shave off the investment recovery in the 5 scenarios?
This calculator was developed for a friend who’s planning a startup business. Among the mountain of financials and research, she had a grid that reviewed scenarios. For her purposes, she needed something basic. She has an idea of the range of prices per visits and number of visits that she wants to explore. We squared that away for her, and then I remained intrigued, wondering what if this was more than a grid and was much more dynamic? So, here’s the result … embedded in a web page via ExcelWebApp!
THE BASICS OF THE BREAK-EVEN CALCULATOR
With an investment or loan, what would it take to break even? Well, a basic break even calculation is easy would be easy, but would just be numbers. More useful would be a dynamic grid where
- The price range and # of visits ranges are dynamic.
- Automatic color coding to show where the numbers shift from positive to negative, i.e., where the initial investment is recovered.
- Simple summaries of how long it’ll take to recover the investment in each scenario.
Thermometer Image Credit: Stuart Miles via freedigitalphotos.net