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