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Break-Even Calculator
Units and revenue needed to cover fixed and variable costs.
Break-Even Units
2,778
Break-Even Revenue
$111,111
Break-even analysis divides fixed costs by the contribution margin (price per unit minus variable cost per unit) to find how many units must be sold to cover all costs.
It's a foundational tool for pricing decisions and business planning, showing the minimum volume needed before a product or venture becomes profitable.
FAQ
What is the break-even point?
It's the sales volume at which total revenue exactly equals total costs — below it the business operates at a loss, above it the business turns a profit.
What happens if variable cost exceeds price?
If variable cost per unit is greater than or equal to price per unit, there's no break-even point at any volume — each unit sold loses money regardless of scale.