Break-Even Point Calculator

Calculate when your business will start making a profit

Cost Structure

Rent, salaries, insurance, utilities, etc.

Materials, labor, shipping per product/service

Break-Even Analysis
Break-Even Results

Break-Even Units

1,667

units per month

Break-Even Revenue

$83,334

per month

Contribution Margin

$30

per unit

CM Ratio

60.0%

margin percentage

Profitability Scenarios

Sell 2,500 units:$25000 profit
Sell 3,334 units:$50000 profit

You need to sell 1,667 units monthly to break even, generating $83,334 in revenue. Each unit beyond break-even contributes $30 to profit.

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Understanding the Concept

Break-even analysis shows the point where total revenue equals total costs. Understanding your break-even point helps with pricing decisions, cost control, and profitability planning.

Tips to Optimize

  • Lower fixed costs reduce break-even point and risk
  • Higher contribution margin means faster profitability
  • Regularly recalculate as costs and prices change
  • Use break-even analysis for new product launches