📊 Break-Even Analysis Calculator

Determine how many units you need to sell to cover all costs

💰 Cost Structure
Rent, salaries, insurance, etc.
Materials, labor, shipping per unit
Revenue per unit sold
🎯 Optional: Sales Target
Desired profit (leave 0 for break-even only)
For performance comparison
Break-Even Point
0
$0 in revenue
Contribution Margin
$0
Profit per unit after variable costs
Margin %
0%
Contribution as % of selling price
Target Units
0
Units needed for target profit
Safety Margin
0%
Current sales vs break-even
📈 Sales Scenarios
Units Sold Revenue Total Costs Profit/Loss Status
📊 Break-Even Chart
Revenue
Total Costs
Fixed Costs

💡 Understanding Break-Even Analysis

  • Break-Even Point: The sales volume where total revenue equals total costs (no profit, no loss)
  • Contribution Margin: Selling price minus variable cost = amount each unit contributes to covering fixed costs
  • Margin of Safety: How much sales can drop before you hit break-even (higher is better)
  • Fixed Costs: Costs that don't change with production volume (rent, salaries, insurance)
  • Variable Costs: Costs that increase with each unit produced (materials, direct labor, packaging)
  • Applications: Pricing strategy, cost control, sales targets, business planning, investment decisions
  • Limitations: Assumes linear relationships, constant selling price, and single product (or fixed product mix)