Break-Even
The "Break-Even" Income represents the income required to cover costs.
Break-Even Income = Total Fixed Costs Divided by Gross Profit %
Fixed Costs;
This represents the costs that have been projected that have not been calculated as a % of Income. In the example below, this includes the Direct Costs, Overhead Expenses and Other Expenses.
Gross Profit %
For the purpose of the Break-Even calculation, the Gross Profit % equals (Total Income - Variable Costs)/Total Income
The Variable Costs represents those costs that are directly related to income and have been projected in Magnifi as a % of income. For example, if income increases 10%, the cost will also increase 10%.
You can also manually input values in the Other Inflows & Other Outflows boxes. This can be useful for Goal Seeking, Eg enter $100,000 in Other Outflows to calculate the Income required to achieve the Desired Surplus of $100,000.