How Excel can calculate your break-even point

(electronic music)…- I was at home one night.…Was a knock on the door.…I go to answer it, friend bursts in, panicked.…She says she's openin' a counseling business…and it's trying to figure how to break even…and there's so many variables that she…can't play with the numbers like she wants to,…to see into the future and know what she's up against.…

Things like, her investment, the average number…of visits per month, the range of prices per session.…She would like to know her breakeven points…for various scenarios.…She flopped down on the couch and…looked up at the sky and asked, "Oz!…"Is this something Excel can help with?"…Yes, it can!…No doubt about that.…

Here's what we built.…We're looking at an average of 60 visits per month,…a low number of 99 total visits, up to 200,…and session prices from $60 up to $125.…Here, we see at $108.75, the breakeven is around 174 visits.…Let's play.…Let's say that, instead of 60 visits per month,…let's do 50, and how about an investment of $13,000?…Ah, everything updated.…

Average number of sessions per month…