Break-Even Calculator
Find the sales volume needed to cover costs, then project units required for your target monthly profit.
Break-Even Point Calculator
This tool helps you estimate the minimum monthly unit volume needed to cover fixed and variable costs. It is useful for pricing, sales targets, and launch planning.
Break-Even Formula
Break-even units = fixed costs ÷ contribution margin per unit. Contribution margin per unit = selling price per unit − variable cost per unit.
What Contribution Margin Tells You
Contribution margin shows how much each sale contributes toward fixed costs and profit. If it is too low, even high sales volumes may struggle to produce profit.
How to Use Margin of Safety
Margin of safety measures how far your current sales are above break-even. A larger margin of safety usually means lower operating risk.
Frequently Asked Questions
What is break-even point?
It is the level where total revenue equals total cost and profit is zero.
How do you calculate break-even units?
Divide fixed costs by contribution margin per unit.
What is margin of safety?
It is the gap between actual sales and break-even sales.
Can I model target profit?
Yes. Add target profit and the tool estimates required monthly unit sales.