Find the number of sales you need each month just to cover your bills. Every sale after that is profit.
Your numbers
Results
- Contribution margin = price − variable cost
- Break-even units =
fixed expenses ÷ contribution margin, rounded up
Margin
The share of the selling price you keep as profit. A $100 sale with a 30% margin leaves you $30.
Markup
How much you add on top of cost. A 30% markup on a $100 cost makes a $130 price, which is only a 23% margin.
Break-even
The point where sales cover every bill. Below it you lose money; above it each sale adds profit.
How to use Break-Even Calculator
- Enter your monthly fixed expenses: rent, insurance, phone, software and your base pay.
- Enter your selling price per unit.
- Enter the variable cost of each sale.
- Optionally add the sales you expect this month to see if you'll clear break-even.
Frequently asked questions
What is a break-even point?
It is the number of sales where revenue exactly covers all your costs. Below it you lose money. Above it, each sale adds profit.
How do you calculate break-even units?
Break-even units = fixed costs ÷ (price − variable cost per unit). With $4,200 in fixed costs and a $105 contribution margin, you need 40 sales a month.
What if my price is lower than my variable cost?
Then you can never break even, because every sale loses money and selling more makes it worse. You need to raise the price or lower the cost per unit.
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