Business

Break-Even Calculator

Find the sales volume or revenue needed to cover all your fixed and variable costs.

Fixed Costs ($)

Rent, salaries, insurance, etc. (costs that don't change with volume)

Variable Cost per Unit ($)

Materials, labor, shipping per unit (costs that scale with volume)

Selling Price per Unit ($)

Break-Even Analysis

Contribution Margin$75.00/unit

Break-Even Units133.33

Break-Even Revenue$13333.00

📊 Profit at Different Volumes

100 units $-2500.00

Rev: $10000.00Cost: $12500.00

200 units +$5000.00

Rev: $20000.00Cost: $15000.00

500 units +$27500.00

Rev: $50000.00Cost: $22500.00

133.33 units (Break-even)$-0.25

Rev: $13333.00Cost: $13333.25

📈 Key Metrics

Fixed Costs$10000.00

Variable Cost per Unit$25.00

Selling Price per Unit$100.00

Contribution Margin %75.0%

💡 Break-Even Point

The break-even point is where total revenue equals total costs (profit = 0). Beyond this point, every additional unit sold generates profit.

📝 Break-Even Examples

Fixed $10,000, Variable $25, Price $100133 units

Fixed $5,000, Variable $10, Price $50125 units

Fixed $20,000, Variable $30, Price $100286 units

💼 Break-Even Tips

• Lower fixed costs → lower break-even point
• Higher contribution margin → fewer units needed
• Use break-even for pricing and launch decisions
• Reduce variable costs to improve profitability
• Safety margin = units sold - break-even units
• Consider seasonal demand when setting targets

Formula

Break-Even Units = Fixed Costs ÷ (Price - Variable Cost per Unit)

Break-Even Revenue = Break-Even Units × Selling Price

Contribution Margin = Price - Variable Cost per Unit

How it works

Formula

Break-Even Units = Fixed Costs ÷ Contribution Margin per Unit

Contribution Margin = Price - Variable Cost per Unit

Break-Even Revenue = Break-Even Units × Price

Example:
Fixed Costs: $10,000
Variable Cost per Unit: $25
Price per Unit: $100

Contribution Margin = $100 - $25 = $75
Break-Even = $10,000 ÷ $75 = 134 units
Revenue at Break-Even = 134 × $100 = $13,400

The break-even calculator determines how many units you need to sell to cover all costs (profit = 0). Enter fixed costs, variable cost per unit, and selling price to find your break-even point. Essential for business planning, pricing strategy, and investment decisions.

Why this matters

Break-even analysis is critical for starting a business, launching a product, or evaluating profitability. It shows the minimum sales needed to avoid losses and helps set realistic sales targets. Understanding break-even helps with pricing, cost control, and risk assessment.

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