Calculate how many units you need to sell to cover your costs. Enter your fixed costs, price per unit, and variable cost per unit to find your break-even point.
Rent, salaries, insurance, etc.
Materials, labor, shipping per unit
Break-Even Point
334 units
Break-Even Revenue
$16,666.67
Contribution Margin
$30.00 / unit
Margin Ratio
60.0%
Daily Target
1
units/day to break even in 1 year
Weekly Target
7
units/week to break even in 1 year
Monthly Target
28
units/month to break even in 1 year
Total: 334 units at $50.00 each = $16,667 revenue
Price +10%
If you raise price by 10%
286 units
-48 units (-14.4%)
Price -10%
If you lower price by 10%
400 units
+66 units (+19.8%)
Variable Cost +10%
If variable costs rise 10%
358 units
+24 units (+7.2%)
Fixed Costs -10%
If you cut fixed costs 10%
300 units
-34 units (-10.2%)
Current break-even: 334 units
Break-even analysis determines the point where total revenue equals total costs. The formula is simple: divide your total fixed costs by the contribution margin per unit (selling price minus variable cost per unit). The result tells you exactly how many units you must sell before your business starts generating profit. This analysis is essential for pricing decisions, launch planning, and evaluating whether a new product or business idea is financially viable.
The break-even point is the number of units you need to sell (or total revenue you need to earn) to cover all your costs — both fixed and variable. Below break-even you're losing money; above it you're making a profit.
Fixed costs are expenses that stay the same regardless of how much you sell. Common examples include rent, salaries, insurance premiums, loan payments, and software subscriptions.
Variable costs change with each unit produced or sold. Examples include raw materials, packaging, shipping, sales commissions, and payment processing fees.
Contribution margin is the difference between the selling price and the variable cost per unit. It represents how much each sale contributes toward covering fixed costs and eventually generating profit.
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