📈 Break-Even Calculator

Break-Even Analysis

Break-even analysis determines the point at which total revenue equals total costs — the minimum sales needed to avoid a loss. It's a critical tool for pricing strategy, business planning, and investment decisions.

The Formula

Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit). The difference between price and variable cost is called the contribution margin — the amount each sale contributes toward covering fixed costs.

Using Break-Even Analysis

• Pricing: Determine the minimum price needed at a given sales volume.
• Planning: Set realistic sales targets and evaluate business viability.
• Decision Making: Evaluate whether to launch a new product or service.