Break-Even Calculator
Calculate your break-even point instantly. Enter fixed costs, selling price, and variable costs to find how many units you need to sell. Includes target profit planning, margin of safety analysis, and profit projections.
Break-Even Analysis
Break-Even Results
Formulas Used
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How to Use
- 1 Enter fixed costs — Add your monthly fixed costs including rent, salaries, insurance, utilities, and other overhead expenses.
- 2 Set per-unit economics — Enter your selling price per unit and variable cost per unit. The contribution margin calculates automatically.
- 3 View break-even results — See break-even units, revenue, and daily/weekly/monthly sales targets needed to cover costs.
- 4 Plan target profit — Enter a target monthly profit to see how many additional units you need to sell beyond break-even.
- 5 Analyze margin of safety — Enter current or projected sales to see your margin of safety and risk level assessment.
Frequently Asked Questions
What is break-even point?
The break-even point is where total revenue equals total costs—no profit, no loss. It's calculated as Fixed Costs ÷ Contribution Margin per unit. Knowing this helps you set sales targets and pricing strategies.
What is contribution margin?
Contribution margin is the selling price minus variable cost per unit. It's the amount each sale contributes toward covering fixed costs and generating profit. Higher margins mean fewer sales needed to break even.
What is margin of safety?
Margin of safety measures how far above break-even your sales are. It's calculated as (Current Sales - Break-Even Sales) / Current Sales × 100. Below 15% is high risk; above 30% is considered healthy.
How do I use what-if analysis?
What-if scenarios show how changes in price or costs affect your break-even point. A 5% price increase typically reduces break-even units significantly, while cost increases require more sales volume.
What's the difference between fixed and variable costs?
Fixed costs stay the same regardless of production volume (rent, salaries, insurance). Variable costs change with each unit produced (materials, packaging, shipping per item). This distinction is crucial for accurate break-even analysis.