Margin of Safety Calculator

Margin of Safety Calculator calculate the margin of safety which is a financial ratio to measure the difference between actual sales and break-even point. Margin of safety formula is given below to show you how to calculate margin of safety quickly and easily.

Margin of Safety Formula

Following is the margin of safety formula on how to calculate margin of safety.
Margin of Safety = Actual Sales - Breakeven Point

For example, a business has actual sales of $150,000 with breakeven point of $100,000, following is how to calculate the margin of safety for the business.

Margin of Safety = $150,000 - $100,000 = $50,000