Break-Even Calculator
Find how many units you need to sell to cover your costs and start making a profit.
Calculator Inputs
Rent, salaries, insurance, etc.
Materials, shipping, etc.
Break-Even Units
334
Break-Even Revenue
$16,667
Margin Per Unit
$30
Contribution Margin
60.00%
Revenue vs Total Costs
Understanding Break-Even Analysis
The break-even point is where total revenue equals total costs. Below this point, you are operating at a loss. Above it, every additional unit sold generates profit equal to the contribution margin (price minus variable cost per unit).
The Formula
Break-Even Units = Fixed Costs / (Price Per Unit - Variable Cost Per Unit). The contribution margin ratio tells you what percentage of each sale goes toward covering fixed costs and, eventually, profit.
Take the Next Step
Now that you have the numbers, here are some ways to act on them.
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