FINANCIAL

Margin of safety calculator

Answers the question: What is my margin of safety?

In accounting, the safety margin refers to the difference between actual sales and break-even sales. You can use this difference to know when a company or project becomes unprofitable. This margin of safety calculator will calculate the safety as an amount, a percentage, and a ratio number.

Results

Margin of safety as percentage: 60 %
Margin of safety as amount: $ 54,000
Margin of safety as ratio number: 0.6

If you don't know your break-even revenue, you can use our break-even calculator in the financial section.


Our calculations

At Calculatorian, we are keen to share our knowledge, be transparent and open to feedback. Here are the calculations used to create this calculator. If you find an error or deficiency, contact us and we'll fix it in an instant!

Margin of safety as percentage was calculated like this:

Margin of safety as amount was calculated like this:

Margin of safety as ratio number was calculated like this:

Variables used in this formula

c = Total sales revenue
be = Break-even sales revenue