Calculate how many units you need to sell to cover costs and start making profit with break-even analysis
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Every business needs to know when they'll start making money. Our break-even calculator shows exactly how many units (or how much revenue) you need to cover your fixed and variable costs. Essential for pricing decisions and financial planning.
Break-even is the point where total revenue equals total costs—no profit, no loss. Above this point, every additional sale generates profit. Below it, you're operating at a loss. The calculation considers fixed costs (rent, salaries) and variable costs (materials, shipping).
Break-Even Formula
Break-Even Units = Fixed Costs / (Selling Price - Variable Cost per Unit)Determine if a new product can be profitable at target price points.
Find the minimum price needed to cover costs and make profit.
Set sales targets and evaluate business model viability.
Evaluate whether to expand capacity or add new offerings.
Fixed costs don't change with production volume: rent, insurance, salaries, equipment leases, loan payments. You pay these whether you sell 0 or 1000 units. Accurately identifying fixed costs is crucial for break-even analysis.