Enter Your Numbers
Fixed Costs (Monthly) Rent, salaries, insurance
$
Selling Price Per Unit What you charge
$
Variable Cost Per Unit Materials, shipping, etc.
$
Break-Even Point
334 units
Revenue needed: $16,700
Key Metrics
Contribution / Unit
$30.00
Contribution Margin
60.0%
Units to Break Even
334
Full Breakdown
| Fixed Costs | $10,000.00 |
| Selling Price / Unit | $50.00 |
| Variable Cost / Unit | $20.00 |
| Contribution / Unit | $30.00 |
| Break-Even Units | 334 |
| Break-Even Revenue | $16,700.00 |
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Profit at Different Sales Volumes
| Units Sold | Revenue | Profit / Loss |
Break-Even Chart
Where total revenue meets total costs is your break-even point.
Formulas Used
Break-Even Units = Fixed Costs / (Price Per Unit - Variable Cost Per Unit)
Contribution Margin = (Price - Variable Cost) / Price × 100
Break-Even Revenue = Break-Even Units × Price Per Unit
Frequently Asked Questions
What is a break-even point?
The break-even point is the number of units you need to sell where your total revenue exactly equals your total costs (fixed + variable). Below this point you lose money; above it you profit.
What is contribution margin?
Contribution margin is the amount each unit sale contributes toward covering fixed costs. It's calculated as: Selling Price - Variable Cost Per Unit. Once you've sold enough units to cover fixed costs, each additional unit's contribution margin becomes pure profit.
How can I lower my break-even point?
Three ways: (1) Reduce fixed costs — negotiate rent, cut overhead. (2) Raise your selling price — even small increases help. (3) Reduce variable costs — find cheaper suppliers, reduce packaging. The most impactful is usually raising price.
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