Break-Even Calculator - Calculate Break-Even Point

Fixed Costs ($)

Variable Costs per Unit ($)

Selling Price per Unit ($)

Expected Units Sold (Optional)

Break-Even Calculator Features

Calculate break-even point in units and revenue
Analyze contribution margin and profitability
Compare fixed vs variable costs
Project profits at different sales volumes
Understand cost structure impact

What is Break-Even Analysis?

Break-even analysis helps businesses determine the point at which total revenue equals total costs, resulting in neither profit nor loss. This critical metric helps in pricing decisions, cost management, and business planning.

Key Components

Fixed Costs: Expenses that remain constant regardless of production volume (rent, salaries, insurance)
Variable Costs: Expenses that change with production volume (materials, labor, packaging)
Contribution Margin: Amount per unit that contributes to covering fixed costs and profit
Break-Even Point: The sales volume where total revenue equals total costs

Business Applications

Pricing strategy development
Cost structure optimization
Profit planning and forecasting
Investment decision making
Risk assessment and management

Benefits

Understand minimum sales needed for profitability
Identify cost reduction opportunities
Make informed pricing decisions
Plan for business growth and expansion
Assess financial viability of new products