Break-Even Calculator
Calculate break-even point and profit targets for your business
Cost & Pricing Information
Enter your business costs and pricing details
Rent, salaries, insurance, utilities, etc.
Materials, labor, shipping per unit
Your selling price to customers
Desired profit amount
Quick Examples
Break-Even Analysis
Units and revenue needed to break even
Break-Even Units
334
Break-Even Revenue
$16,700.00
Contribution Margin$30.00
Contribution Margin Ratio60.00%
Target Profit Analysis
Units needed to reach your profit goal
Units Needed
500
Revenue Needed
$25,000.00
Additional Units Beyond Break-Even166
Cost Breakdown
Fixed Costs$10,000.00
Variable Cost per Unit$20.00
Price per Unit$50.00
Total Variable Cost at Break-Even$6,680.00
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About Break-Even Analysis
What is Break-Even Point?
The break-even point is the level of sales at which total revenue equals total costs, resulting in neither profit nor loss. It's a critical metric for business planning and decision-making.
Key Concepts
- Fixed Costs: Expenses that don't change with production volume (rent, salaries)
- Variable Costs: Expenses that change with production volume (materials, labor)
- Contribution Margin: Selling price minus variable cost per unit
- Contribution Margin Ratio: Percentage of each sale that contributes to fixed costs
Formula
Break-Even Units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit)
Use Cases
- Determine minimum sales needed to avoid losses
- Set pricing strategies
- Evaluate new product launches
- Make informed business decisions
- Plan production and sales targets