Break-Even Analysis Calculator
Calculate how many units you need to sell to cover all costs and start making profit. Switch to Marketing Mode to analyze ROAS, CAC, and ad spend profitability.
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Analysis Mode
Calculate break-even point for your product or service
Product/Service Details
Price you charge customers for one unit
Cost to produce/deliver one unit (materials, shipping, etc.)
Costs that don't change with sales (rent, salaries, insurance)
Amount each sale contributes to covering fixed costs
Sales Projections (Optional)
Used to calculate margin of safety
We'll calculate sales needed for this profit
Break-Even Point
What this means:
- • Sell 334 units to cover all costs
- • Sales below = losing money
- • Sales above = making profit
Margin of Safety
Target Profit Analysis
Understanding Break-Even Analysis
What is Break-Even Point?
The break-even point is the sales level where total revenue equals total costs (profit = $0). Below break-even you're losing money, at break-even you're covering costs, and above break-even you're making profit.
Contribution Margin
Your contribution margin (selling price - variable cost) is the amount each unit sale contributes to covering fixed costs. After reaching break-even, this becomes pure profit. Higher contribution margins mean lower break-even points.
Tips for Lowering Break-Even Point
- Increase your selling price (biggest impact on contribution margin)
- Reduce variable costs (negotiate with suppliers, optimize production)
- Minimize fixed costs (delay hiring, use flexible spaces)
- Focus on high-margin products or services
Key Financial Terms
Understand the essential concepts behind this calculator
Break-Even Analysis
A calculation that determines the point at which total revenue equals total costs, showing how many units must be sold or how much revenue is needed before a business becomes profitable.
Contribution Margin
The amount each unit sold contributes toward covering fixed costs and generating profit.
Frequently Asked Questions
Common questions about the Break-Even Analysis Calculator
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⚠️ Important Disclaimer
This Break-Even Analysis Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.