Break-Even Calculator
Calculate your break-even point to know how many units you need to sell to cover all costs and start making profit.
About This Calculator
🧮 Break-Even Formulas
BEP = Fixed Costs ÷ (Price - Variable Cost)CM = Selling Price - Variable Cost per UnitUnits = (Fixed Costs + Target Profit) ÷ CM📊 Cost Types
| Fixed Costs | Variable Costs |
|---|---|
| Rent/Lease | Raw materials |
| Salaries (fixed) | Direct labor |
| Insurance | Packaging |
| Depreciation | Shipping |
| Loan payments | Sales commissions |
💡 Tips
- Lower break-even: Reduce fixed costs or increase contribution margin
- Pricing power: Higher prices mean fewer units needed to break even
- Safety margin: Aim to sell 20-30% above break-even for buffer
- Seasonal business: Calculate break-even per season, not just annually
❓ FAQ
What's a good contribution margin?
It varies by industry. Software: 80-90%. Retail: 30-50%. Restaurants: 60-70%. Higher margins give more flexibility.
How often should I recalculate?
Whenever costs change significantly, you adjust pricing, or launch new products. At minimum, review quarterly.
🔗 Related Calculators
? Frequently Asked Questions
How accurate is this
This calculator uses standard formulas and provides accurate results for typical use cases. For professional or critical applications, always verify results with certified professionals or official sources.
Is this calculator free to use?
Yes, this Break-Even Calculator • Business • Calculator is completely free to use with no registration required. You can use it as many times as needed without any limitations.
Can I use this on mobile devices?
Absolutely! This calculator is fully responsive and works perfectly on smartphones, tablets, and desktop computers.
How do I interpret the results?
The results are displayed clearly with appropriate units. Refer to the "About This Calculator" section for detailed information.