Back to Tools
Financial Tool
Break-Even Analysis Calculator
Determine how many units you need to sell to break even and reach your profit targets.
Break-Even Calculator
Enter your cost and pricing data
Rent, salaries, insurance, etc. (costs that don't change with production)
Materials, labor, shipping per unit
Selling price per unit
Break-Even Analysis Chart
Visual representation of costs, revenue, and break-even point
Break-Even Results
Your break-even analysis results
Contribution Margin per Unit
$30.00
60.0% margin ratio
Break-Even Point
334 units
$16,700 revenue
Cost Structure
Fixed Costs:$10,000
Variable Cost/Unit:$20.00
Price/Unit:$50.00
Contribution/Unit:$30.00
Key Insights
• You need to sell 334 units to break even
• Each unit contributes $30.00 toward fixed costs and profit
Understanding Break-Even Analysis
Break-even analysis helps you understand the minimum sales volume needed to cover all costs. It's essential for pricing decisions, business planning, and risk assessment.
Key Concepts:
- Fixed Costs: Expenses that remain constant regardless of production volume (rent, salaries, insurance)
- Variable Costs: Expenses that change with production volume (materials, direct labor)
- Contribution Margin: The amount each unit contributes to covering fixed costs and generating profit
How to Use This Analysis:
- Set realistic pricing based on your break-even requirements
- Determine minimum sales targets for profitability
- Evaluate the impact of cost changes on profitability
- Make informed decisions about scaling production