Break Even Calculator

Calculate break even point, contribution margin, and profitability analysis

Break Even Details

Break Even Analysis Results

Enter your cost and pricing details to calculate break even point.

How to Use the Break Even Calculator

1

Enter Fixed Costs

Input your total fixed costs including rent, salaries, insurance, and other expenses that don't change with production volume.

2

Enter Variable Cost Per Unit

Specify the variable costs for producing one unit, including materials, direct labor, and other per-unit expenses.

3

Input Selling Price

Enter the price at which you plan to sell each unit to customers.

4

Set Target Profit (Optional)

If you want to calculate units needed to reach a specific profit goal, enter your target profit amount.

5

Review Break Even Point

View your break even point in units and revenue, plus contribution margin and profitability analysis.

6

Analyze Safety Margin

Check your margin of safety to understand the cushion between actual sales and break even point.

Break Even Analysis Tips

  • Lower fixed costs reduce your break even point
  • Higher selling prices decrease break even units needed
  • Reducing variable costs improves contribution margin
  • Monitor your break even point regularly
  • Use break even analysis for pricing decisions
  • Consider multiple scenarios with different price points
  • Factor in seasonality when planning break even
  • Include all fixed costs: rent, salaries, utilities, insurance
  • Update variable costs as supplier prices change
  • Set target profit goals beyond break even point
  • Use margin of safety to assess business risk
  • Break even analysis helps evaluate new product launches

Frequently Asked Questions