Overview

The Break-Even Calculator determines the point where total revenue equals total costs. Enter fixed costs, variable costs per unit, and selling price to find the minimum sales volume and revenue needed to avoid losses.

Formula

Break-Even Units = Fixed Costs / (Selling Price - Variable Cost per Unit). Break-Even Revenue = Fixed Costs / (1 - Variable Cost Ratio). Variable Cost Ratio = Total Variable Costs / Total Revenue.

How to Use

1. 1Enter monthly or annual fixed costs (rent, salaries, etc.).
2. 2Enter the selling price per unit.
3. 3Enter the variable cost per unit (materials, packaging, etc.).
4. 4Optionally enter a target profit amount.
5. 5Click Calculate to view the break-even sales volume and revenue.

Tips

• ✔Reducing fixed costs lowers the break-even point and accelerates profitability.
• ✔Increasing the selling price or reducing variable costs raises the contribution margin per unit.
• ✔For seasonal businesses, analyze break-even on a monthly basis to manage cash flow effectively.

FAQ