Break-Even Calculator
How many units do you need to sell before you stop losing money? This calculator shows your break-even point and path to profitability.
Fixed Costs (Monthly)
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Insurance, utilities, etc. Product / Service
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Materials, fulfillment, commissions Goals
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Break-Even Analysis
Break-Even Units -- Units needed to cover all costs
Break-Even Revenue -- Monthly revenue at break-even
Contribution Margin -- Profit per unit after variable costs
Contribution Margin Ratio -- Percentage of each sale that covers fixed costs
Target Profit
Units for Target Profit -- Units to hit your profit goal
Revenue for Target Profit --
Cost Summary
Total Fixed Costs -- per month
Gross Margin -- per unit
Daily Sales Needed -- to break even (30 days)
Weekly Sales Needed -- to break even
Price Sensitivity
How break-even changes at different price points:
| Price | Contribution | Break-Even Units | Break-Even Revenue |
|---|
Break-Even Visualization
Revenue Total Costs Fixed Costs
Understanding Break-Even
Contribution margin: The amount each sale contributes toward covering fixed costs. Calculated as Price - Variable Cost. Higher contribution margin = fewer units needed to break even.
Fixed vs Variable costs: Fixed costs remain constant regardless of sales (rent, salaries). Variable costs scale with each unit (materials, shipping). Know the difference—it's critical for pricing.
Safety margin: Once you know break-even, calculate your safety margin: (Actual Sales - Break-Even) / Actual Sales. This tells you how much sales can drop before you lose money.