Ad Space (728x90) Ad Space (320x50)
Break-Even Calculator
$
Rent, salaries, insurance, etc.
$
$
Materials, shipping, etc. per unit
Break-Even Units
500
Break-Even Revenue
$25,000
Contribution Margin
$20.00
Contribution Ratio
40%
Profit at Different Volumes
At 250 units (50%) -$5,000
At 500 units (100%) $0
At 750 units (150%) $5,000
At 1000 units (200%) $10,000
Ad Space (336x280) Ad Space (300x250)
How to Use the Break-Even Calculator
- Enter your total fixed costs
- Enter your selling price per unit
- Enter your variable cost per unit
- View break-even point in units and revenue
Key Formulas
- Contribution Margin = Price - Variable Cost
- Break-Even Units = Fixed Costs ÷ Contribution Margin
- Break-Even Revenue = Break-Even Units × Price
Ad Space (336x280) Ad Space (300x250)
Frequently Asked Questions
What is break-even point?
The break-even point is where total revenue equals total costs - you're not making or losing money. Sell more than this to profit.
What are fixed costs?
Fixed costs stay the same regardless of sales volume: rent, salaries, insurance, equipment. They don't change with production.
What are variable costs?
Variable costs change with production: materials, packaging, shipping. More units sold = higher variable costs.
How can I lower my break-even point?
Reduce fixed costs, lower variable costs per unit, or increase your selling price. Each improves your contribution margin.