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Margin of Safety Calculator

Finance

Calculate your margin of safety, how far your current sales can drop before you hit your breakeven point.

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USD
$0.00$1,000,000,000,000,000.00
USD
$0.00$1,000,000,000,000,000.00
USD
$0.01$1,000,000.00

Margin of Safety ($)

$50,000,000

How much sales can fall before the business reaches breakeven.

USD

Margin of Safety (%)

25.00%

Margin of Safety (Units)

125,000

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

How is the accounting Margin of Safety calculated?

Margin of Safety = Current (or Estimated) Sales - Breakeven Sales. Dividing that by current sales gives the Margin of Safety Ratio, and dividing by price per unit gives it in units.

How is this different from the value-investing margin of safety?

This managerial-accounting version measures a cushion above your breakeven sales level. Value investing uses the same term differently, to describe the discount between a stocks intrinsic value and its market price.

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