Expert in Financial Analysis and Corporate Finance Strategies.
Master your break-even analysis with our professional baii plus calculator online. This tool simulates the “Break-Even” (BRKEV) worksheet of the Texas Instruments BA II Plus, allowing you to solve for Profit, Price, or Quantity with precision.
baii plus calculator online
Enter any 3 values to solve for the 4th.
baii plus calculator online Formula
Or solved for Quantity (Break-Even):
Source: Investopedia – Break-Even Analysis | CFI Guide
Variables:
- Fixed Cost (F): Total costs that do not change regardless of production volume (e.g., rent, salaries).
- Price per Unit (P): The selling price of a single unit of your product or service.
- Variable Cost (V): Costs that vary directly with the level of production (e.g., raw materials).
- Quantity (Q): The number of units produced and sold to reach the break-even point or a target profit.
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What is baii plus calculator online?
The baii plus calculator online is a digital version of the powerful financial worksheet found on the industry-standard Texas Instruments BA II Plus. Financial professionals and students use the Break-Even (BRKEV) function to determine the exact volume of sales required to cover all costs.
By using this tool, you can quickly analyze “What-If” scenarios. For example, if you increase your selling price, how many fewer units do you need to sell to stay profitable? Understanding the relationship between fixed and variable costs is crucial for any business plan or CFA exam preparation.
How to Calculate baii plus calculator online (Example)
- Identify Costs: Suppose your monthly rent and insurance (Fixed Cost) is $4,000.
- Determine Price: You sell each gadget for $100.
- Calculate Variable Costs: It costs you $60 in materials and labor to make one gadget.
- Apply Formula: Q = 4,000 / (100 – 60) = 4,000 / 40.
- Result: You must sell 100 units to break even.
Frequently Asked Questions (FAQ)
It calculates the relationship between fixed costs, variable costs, price, and quantity. It is primarily used to find the sales volume where total revenue equals total costs.
This difference is known as the “Contribution Margin.” It represents the amount each unit contributes toward covering fixed costs.
Yes. Simply add your desired profit to the Fixed Cost (F) input field to find the quantity required to reach that profit level.
If your Variable Cost (V) is higher than your Price (P), you lose money on every unit sold, and you can never break even through volume alone.