⚖️ Break-Even Calculator

About this Break-Even Calculator

The break-even calculator shows the exact sales volume at which your business stops losing money: total fixed costs divided by the contribution per unit (price minus variable cost). Below that volume you are in loss; above it, every extra unit adds pure contribution toward profit. It is the single most useful number for pricing decisions, new product launches and loan planning.

How to use it

1. Add up your fixed costs for the period — rent, salaries, utilities, insurance.
2. Enter the selling price of one unit.
3. Enter the variable cost of one unit — materials, packaging and per-unit delivery.
4. Click Calculate to see the break-even units and the revenue they represent.

Example

With fixed costs of 200,000, a price of 1,000 and a variable cost of 600, each unit contributes 400, so you break even at 500 units — 500,000 of revenue.

Frequently asked questions

What is the difference between fixed and variable costs?

Fixed costs stay the same however much you sell (rent, salaries). Variable costs rise with every unit made or sold (raw materials, packaging, courier charges).

Should the break-even figure include my own salary?

Yes — if you pay yourself from the business, include a realistic salary in fixed costs, otherwise the break-even point flatters the business.

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