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Break-Even Calculator
Find your break-even point by analyzing fixed costs, variable costs, and pricing.
Enter Your Numbers
$
Rent, salaries, insurance, subscriptions
$
$
Materials, shipping, direct labor per unit
$
Calculate units needed for specific profit
Break-Even Formula
Break-Even Units = Fixed Costs ÷ (Price - Variable Cost)
= $10,000 ÷ ($100 - $40)
Break-Even Analysis
Break-Even Point
167 units
or $16,667 in revenue
Contribution Margin
$60
per unit
Margin Percentage
60.0%
of price
Profit/Loss by Units Sold
0 units
-$10,000
34 units
-$7,960
68 units
-$5,920
102 units
-$3,880
136 units
-$1,840
170 units
+$200
204 units
+$2,240
238 units
+$4,280
272 units
+$6,320
306 units
+$8,360
Profit
Loss
At Break-Even Point
Revenue (167 × $100)$16,667
- Fixed Costs-$10,000
- Variable Costs (167 × $40)-$6,680
Profit/Loss$0
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Understanding Break-Even Analysis
Why Break-Even Matters
Break-even analysis helps you answer critical business questions: How many units must I sell to cover costs? What happens if I raise or lower prices? Can I afford to hire another employee? It's the foundation for pricing strategy, sales targets, and financial planning.
Fixed vs. Variable Costs
Fixed Costs
- • Rent/lease payments
- • Salaries (non-commission)
- • Insurance premiums
- • Software subscriptions
- • Loan payments
Variable Costs
- • Raw materials
- • Shipping/delivery
- • Sales commissions
- • Payment processing fees
- • Packaging
Ways to Lower Break-Even
- Increase prices: Higher contribution margin per sale
- Reduce fixed costs: Renegotiate rent, switch software
- Lower variable costs: Bulk discounts, better suppliers
- Improve efficiency: Automation reduces labor per unit
Frequently Asked Questions
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