Margin of Safety Calculator
Sales Cushion Above Break-Even
Margin of safety shows how much sales can fall before a business reaches break-even.
Method: Subtract break-even sales from actual sales, then divide by actual sales to show the safety percentage.
Understanding Margin of Safety
1. What This Calculator Measures
Margin of safety shows how far actual sales are above break-even sales.
2. How the Calculation Works
The calculator subtracts break-even sales from actual sales and compares that cushion with actual sales.
3. Formula or Rule Used
margin of safety = actual sales - break-even sales.
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