EN

Margin of safety

How much sales can fall before you make a loss.

MS = (V − Ve) ÷ V

What each letter means

  • V: Sales
  • Ve: Break-even sales

An example

With V = €60,000, Ve = €32,727: Margin of safety = 45.45%.

Try it with your numbers

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€
Margin of safety
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Related formulas

What it is: Margin of safety