Margin of Safety Calculator
Enter sales and break-even sales in the same currency unit. Optionally add 1–20 sales-decline percentages from 0% to 100%.
Margin of Safety Calculator
Enter sales, break-even and optional scenarios.
- Sales gap
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- Gap as % of sales
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| Sales decline (%) | Scenario sales | Above / below break-even | Margin as % of scenario sales |
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Amounts and scenarios use the same currency and period. Negative gaps mean sales are below break-even, not remaining room to fall. Break-even is user-entered; this tool does not estimate it.
Calculations use floating-point arithmetic. Values display to 12 significant digits; the TXT report includes raw inputs and numeric outputs.
A QUICK WALKTHROUGH
How to use this tool
- Enter the three-letter currency code and current or budgeted sales.
- Enter break-even sales in the same currency, then optionally add decline scenarios.
- Review the sales gap, its share of sales, and each what-if scenario.
Calculation and scope
Gap = sales − break-even. Percentage = gap ÷ sales × 100; it is undefined when sales are zero. For each decline d, scenario sales = sales × (1 − d ÷ 100), then recompute the gap and percentage.
Limitations
Break-even is an input, not inferred by this calculator. A negative gap means sales are below break-even; it is not remaining downside capacity. Scenario rows do not change actual sales.
GOOD TO KNOW
Common questions
What does a negative gap mean?
Sales are below the break-even value entered. It is a current shortfall in this comparison, not future room for sales to fall.
How are decline scenarios calculated?
Each user-entered decline percentage is applied to the entered sales while break-even stays unchanged.
Does this calculate break-even?
No. Enter a break-even value calculated separately and use the same currency and period for both amounts.