Break-Even Analysis Calculator

Determine exactly how many units you need to sell to cover your costs and start making a profit.

Total Fixed Costs $
Variable Cost (Per Unit) $
Selling Price (Per Unit) $
⚠️ Warning: Your Variable Cost is higher than or equal to your Selling Price. You lose money on every sale, making a break-even point impossible.
Break-Even Point (Units)
1,154
Units required to sell
Break-Even Point (Sales Revenue)
$28,850.00
$13.00 Contribution Margin
(Per Unit)
52.00% Contribution Margin
Ratio

Understanding Break-Even Analysis

A break-even analysis helps you determine the point at which your total revenue equals your total costs. Past this point, every additional sale contributes to pure profit.

  • Fixed Costs: Expenses that remain the same regardless of how much you sell (e.g., rent, insurance, salaries).
  • Variable Costs: Expenses that fluctuate depending on production volume (e.g., raw materials, packaging, direct labor).
  • Contribution Margin: This is the Selling Price minus the Variable Cost. It represents how much money from each sale goes toward paying off your fixed costs. Once fixed costs are paid, this margin becomes your profit per unit.
  • The Formula: Break-Even Units = Fixed Costs ÷ Contribution Margin