Margin Of Safety (MOS) Calculator

Calculate your company's margin of safety with our calculator. Enter sales, breakeven point and optional sales price per unit for results.

Margin Of Safety Formula

Current estimated sales: $80,000 Breakeven point: $20,000 Margin of safety: $60,000 This is an example of calculating the margin of safety for a business, which indicates how much sales can drop before the company starts to lose money. In this case, the business has a significant buffer between its estimated sales and breakeven point.

Margin Of Safety Ratio Formula

A company estimates its current sales to be $1 million. It also calculates its margin of safety to be 15% of its total revenue. What is the margin of safety ratio? Margin of safety ratio = (0.15 * 1,000,000) / 1,000,000 = 0.15

Margin Of Safety Percentage Formula

Margin Of Safety In Units Formula

The company has a margin of safety of $10 per unit and sells each unit for $50. The margin of safety in units is 0.2. Explanation: This calculation determines how many units need to be sold before the company breaks even, based on their current sales price and desired profit per unit.

Meaning

The Margin Of Safety (MOS) is a measure that shows how much a stock's price can fall before its earnings become too expensive to justify owning the stock. In simpler terms, it represents a buffer zone between a company's current valuation and its ability to sustain itself in case of an economic downturn or other negative market conditions.