⚖️ Break-even Calculator
Calculate your break-even point in units and revenue. Find out exactly how many units you need to sell to cover your fixed costs and start making a profit.
| Units | Revenue | Total Cost | Profit / Loss |
|---|
Break-even Formula
The denominator (Price − Variable Cost) is called the Contribution Margin — how much each sale contributes toward covering fixed costs.
Example
Fixed costs $10,000, variable cost $30/unit, price $50/unit.
Frequently Asked Questions
The break-even point is the level of sales at which total revenue equals total costs, meaning zero profit and zero loss. Every unit sold above break-even generates pure profit.
Contribution margin = Price − Variable Cost per unit. It represents how much each sale contributes to covering fixed costs. Once fixed costs are covered, contribution margin becomes profit.
You can lower break-even by: (1) reducing fixed costs, (2) reducing variable costs, (3) raising prices, or (4) improving your product mix to favor higher-margin items.
Break-even analysis tells you the minimum sales needed to stay in business, helps with pricing decisions, evaluates new product viability, and shows the impact of cost changes on profitability.
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