Margin of Safety Calculator

The margin of safety measures how far sales can fall before losses begin. It is the gap between actual and break-even revenue, expressed as a percentage. At its core the tool evaluates MoS % = (actual sales − break-even sales) ÷ actual sales × 100. Actual sales of 90,000 against a 60,000 break-even give (90,000 − 60,000) ÷ 90,000 = 33.3%: revenue can drop a third before the business dips into loss. Adjust any field and the outputs recompute immediately, so you can test as many scenarios as you like in the units you prefer.

1. 1

   Step 1

   Gather the numbers the Margin of Safety Calculator needs and type them in.

2. 2

   Step 2

   The engine evaluates MoS % = (actual sales − break-even sales) ÷ actual sales × 100 instantly as you type.

3. 3

   Step 3

   Check the output and its unit before using it.

4. 4

   Step 4

   Repeat with different inputs to test alternatives.

• Computing on units not revenue

• Treating it as static

• Confusing with markup