What is the difference between the margin of safety and break-even point?

Break-even point (BEP) is the level of sales where the total cost - fixed cost and variable cost - equals total revenues. Break-even is where Net Income is zero. There is no profit and no loss.
The Margin of Safety (MoS) is a difference between actual/budgeted sales and the level of breakeven sales. In this detailed video, I will calculate both the Break-even and Margin of Safety. I'll do it for the number of units and dollars.

Chapters:
0:00 Intro
1:18 Contribution Margin calculation
3:13 Break-even point
3:50 Margin of safety
5:50 Fixed cost - Personal Finance examples

Chris Menard's Blog Post

Other Break-even videos:

Notes:
Break-even must be calculated before figuring out the Margin of Safety

And make sure you subscribe to my channel!

-- EQUIPMENT USED ---------------------------------

-- SOFTWARE USED ---------------------------------

DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links I provide, I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel, so I can continue to provide you with free content each week!