Break-Even Calculator
Determine the sales volume needed to cover your costs and start making a profit.
Cost Inputs
$
$
$
Costs that change with production volume, like materials, packaging, and direct labor.
Contribution Margin
$60per unit
Break-Even Units
84
Total units sold to net $0
Break-Even Revenue
$8,400
Gross sales required
Break-Even Analysis
The Goal
To cover your total fixed costs of $5,000, you need to sell 84 units.
Unit Economics
- Each unit sold earns $100.
- Variable costs take $40 away instantly.
- You keep $60 to pay off your overhead.
Profit Threshold
- At unit #84, you cover all costs.
- Every unit sold after that adds $60 directly to profit.
What is a Break-Even Calculator?
A Break-Even Calculator is a financial tool used to determine the point at which a business's total revenues equal its total costs, resulting in neither a profit nor a loss. It helps you understand how many units of a product you need to sell or how much revenue you must generate to cover all your expenses.
How to Use This Tool
- Enter Fixed Costs: Input all your costs that do not change with production levels (e.g., rent, salaries, insurance).
- Enter Price Per Unit: Input the selling price for a single unit of your product.
- Enter Variable Cost Per Unit: Input the costs that change directly with each unit produced (e.g., materials, direct labor).
- Review the Results: The calculator will instantly show you the "Break-Even Units" (how many items you need to sell) and the "Break-Even Revenue" (the total sales amount needed to cover all costs).