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Break-Even Calculator

Calculate how many units you need to sell to cover costs and start making profit with break-even analysis

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Find Your Break-Even Point

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.

Understanding Break-Even Analysis

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)

How to Calculate Break-Even

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Common Use Cases

New Product Launch

Determine if a new product can be profitable at target price points.

Pricing Strategy

Find the minimum price needed to cover costs and make profit.

Business Planning

Set sales targets and evaluate business model viability.

Investment Decisions

Evaluate whether to expand capacity or add new offerings.

Frequently Asked Questions

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.

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