Break-Even Calculator
Calculate how many units you need to sell to cover costs and reach profitability.
Rent, salaries, insurance, etc.
Materials, labor per unit, etc.
Understanding Break-Even
Break-even point: The number of units where total revenue equals total costs. You're not making money, but you're not losing it either.
Contribution margin: Revenue minus variable costs. This is what each unit "contributes" toward covering fixed costs and profit.
Fixed costs: Expenses that don't change with production volume—rent, salaries, insurance.
Variable costs: Expenses that increase with each unit produced—materials, direct labor, shipping.
This calculator provides estimates for educational purposes only.