Calculate your break-even point in units and revenue. Understand when your business will start making profit.
Cost & Pricing
Rent, salaries, insurance...
Materials, labor, shipping...
Profitability Analysis
Break-Even Units334units sold
Break-Even Revenue$16,700
Contribution Margin$30.00/ unit
Cost vs Revenue Analysis
About this calculator
Overview
Calculate your break-even point in units and revenue. Understand when your business will start making profit.
💡
Pro Tips
What is the Break-Even Point?: The break-even point is the level of sales at which total revenues equal total costs. At this point, the business is making neither a profit nor a loss.
Why distinguishes fixed vs. variable costs?: Fixed costs (rent, salaries) generally stay the same regardless of sales volume. Variable costs (materials, shipping) increase directly with each unit sold.
How can I lower my break-even point?: You can lower it by reducing your fixed costs (e.g., cheaper rent), reducing variable costs (e.g., cheaper materials), or increasing your price per unit.
!
Fun Facts
"Most small businesses take 2 to 3 years to become profitable and pass their break-even phase."
"The concept of break-even analysis is a cornerstone of "management accounting" and is essential for any business plan."
"Software companies often have very low variable costs (copying code is free), which allows them to become extremely profitable once they cover their fixed development costs."
