Break-Even Calculator
Calculate break-even point and target profit
Advertisement
Ad space
Formula
Formula
Break-even Units = FC / (P - VC). Break-even Revenue = FC / (1 - VC/P). Target Units = (FC + Target Profit) / (P - VC). CM = P - VC.
Break-even analysis (CVP analysis) shows the relationship between costs, volume, and profit. Contribution margin covers fixed costs then becomes profit. Margin of safety shows how far sales can drop before losses occur.
How to Calculate Manually
- 1 Enter total fixed costs per period
- 2 Enter variable cost per unit
- 3 Enter selling price per unit
- 4 Optionally enter target profit
- 5 Enter expected sales volume
- 6 Calculator shows break-even and profit analysis
Advertisement
Ad space
Reference Table
| Scenario | Fixed Costs | Var Cost/Unit | Price | BE Units | BE Revenue |
|---|---|---|---|---|---|
| Low Fixed, High Margin | $10,000 | $10 | $50 | 250 | $12,500 |
| High Fixed, Low Margin | $100,000 | $40 | $50 | 10,000 | $500,000 |
| SaaS Business | $50,000 | $5 | $100 | 526 | $52,600 |
| Manufacturing | $200,000 | $30 | $45 | 13,333 | $600,000 |
| Retail | $30,000 | $15 | $25 | 3,000 | $75,000 |
Break-even analysis is a fundamental financial tool that tells you how much you need to sell to cover your costs. It's essential for pricing decisions, business planning, and evaluating new ventures. The break-even point is where total revenue equals total costs—no profit, no loss...
Frequently Asked Questions
-
What is the break-even point?
-
What are fixed vs variable costs?
-
How do I calculate target profit?
Advertisement
Ad space