Calculator Inputs
$
$
$
Results
834
Break-Even Units
$83,400.00
Break-Even Revenue
$60.00
Contribution Margin
60.0%
CM Ratio
Break-Even Analysis
About This Calculator
How Break-Even Analysis Works
The break-even point is where total revenue equals total costs — you're neither making nor losing money. Every unit sold beyond this point generates pure profit.
How to Lower Your Break-Even Point
- Reduce fixed costs (negotiate rent, cut subscriptions)
- Increase selling price (if market allows)
- Lower variable costs (better supplier deals, efficiency)
Frequently Asked Questions
What's a contribution margin?
Contribution margin = Selling Price minus Variable Cost. It shows how much each unit contributes to covering fixed costs. Once fixed costs are covered, it becomes profit.
Why is break-even analysis important?
It tells you the minimum sales volume needed to avoid losses. Essential for pricing decisions, new product launches, and business planning.