⚖️ Break-Even Analysis

Find out exactly how many units you need to sell to cover all your costs.

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*Note: Selling price must be higher than the variable cost per unit.

Enter your costs and pricing to see the break-even point.

The Break-Even Formula

To calculate the break-even point in units, we divide total fixed costs by the "Contribution Margin" (the profit made on each individual unit sold).

[Image of break-even point graph showing fixed costs variable costs and total revenue]
BEP (Units) =
Total Fixed Costs
Price per Unit - Variable Cost per Unit

Fixed Costs: Expenses that stay the same regardless of sales (e.g., Rent at $2,000/mo).
Variable Costs: Expenses that change based on volume (e.g., Materials at $50 per unit).