Break-Even Analysis Calculator
Determine how many units you need to sell or how much revenue you need to generate to cover all costs and begin making a profit.
Understanding Break-Even Analysis
Break-even analysis helps you determine the point at which your business covers all costs and begins making a profit. It's a crucial metric for new products, services, or businesses to understand viability and set realistic goals.
The break-even point is calculated by dividing your fixed costs by your contribution margin per unit (selling price minus variable costs). This tells you how many units you must sell to cover all costs.
Use this calculator to find your break-even point and test different pricing and cost scenarios to improve your business's profitability.
Break-Even Analysis Calculator
Calculate how many units you need to sell to cover costs and start making a profit.
Cost & Revenue Data
Break-Even Results
Break-Even Analysis
Analysis Explanation
Break-Even Analysis
Based on your inputs, you need to sell 0 units to reach your break-even point. At this level, your total revenue will be $0.00, which exactly covers your total costs.
You are currently selling 150 units, which is 150 units above your break-even point. Your business is profitable.
Profit Target
To achieve your desired profit of $5,000.00, you need to sell 0 units in total.
Great news! Your current sales of 150 units already exceed what you need to reach your desired profit of $5,000.00.
Contribution Margin
Your contribution margin is $0.00 per unit, which means each unit sold contributes this amount toward covering fixed costs and generating profit. Your contribution margin ratio is 0.00%, which means this percentage of each sales dollar contributes to fixed costs and profit.
Your contribution margin ratio is relatively low. Consider ways to increase your selling price or reduce variable costs to improve profitability.
How to Use This Calculator
This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:
Enter Your Details
Fill in all required fields with your financial information.
Adjust Parameters
Use sliders and toggles to customize scenarios and assumptions.
View Results
Get instant calculations that update as you change inputs.
Compare Options
Try different scenarios to find the best financial solution.
Break-Even Analysis Resources & Tips
Using Break-Even Analysis Effectively
- Categorize your costs correctly as fixed or variable
- Recalculate your break-even point when costs or prices change
- Use break-even analysis for pricing decisions and promotions
- Consider break-even in units and dollars for different perspectives
- Analyze break-even by product line or service category
- Build in a safety margin above break-even for business sustainability
- Use sensitivity analysis to test different scenarios