Break Even Calculator
Calculate the exact point where your total revenue equals total expenses, marking the threshold for profitability.
Margin Goal
"Every unit sold above break-even increases your bottom line by the unit contribution margin."
Analysis Ready
Please ensure selling price is greater than variable cost to calculate your break-even point.
Break Even Calculator
Calculate the exact point where your total revenue equals total expenses, marking the threshold for profitability.
What is a Break-Even Point?
The break-even point is the production level where total revenues equal total expenses. In other words, it's the point where your business neither makes a profit nor sustains a loss. Any sale beyond this point contributes directly to profit.
Profitability Threshold
Identifying the volume required to move from debt/loss into generating positive net income.
Break-Even Formula
Break-Even Units = Fixed Costs / (Price - Variable Cost)Price minus variable cost is known as the 'Contribution Margin'. This amount goes toward covering fixed costs.
Business Analysis Scenarios
Service Startup
With $2,000 in monthly fixed costs, a $100 service price, and $20 variable cost, you need to sell 25 services to break even.
Product Sales
If fixed costs are $5,000, selling price is $50, and unit cost is $30, the break-even point is 250 units.