Break-Even Point Calculator
Calculate how many units you need to sell or what revenue you need to cover your costs and break even.
Rent, salaries, subscriptions, insurance
Materials, packaging, commissions
Units needed to hit this profit goal
How to Use
1. Enter all fixed costs (costs that don't change with sales volume) 2. Enter selling price per unit 3. Enter variable cost per unit (costs that increase with each sale) 4. Optionally enter a profit target to see units needed for that goalThe contribution margin is the profit per unit available to cover fixed costs.
Formula
Break-Even Units = Fixed Costs ÷ Contribution Margin | CM = Selling Price − Variable CostFrequently Asked Questions
What are fixed vs variable costs?
Fixed costs stay constant regardless of sales (rent, salaries). Variable costs change with output (materials, packaging, sales commissions).
What is contribution margin?
Contribution margin is selling price minus variable cost. It's the amount each unit "contributes" toward covering fixed costs, then profit.
How do I use this for a service business?
Use "hours" or "projects" as your unit. Selling price is your rate; variable cost is time-based expenses like contractor costs or materials per project.
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