Break-Even Calculator

Advanced Break-Even Calculator - Business Financial Analysis | CalcHub

Single Product Analysis

Calculate break-even point for a single product or service

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Advanced Options
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Multi-Product Analysis

Calculate break-even for multiple products with different margins

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Product Price ($) Cost ($) Sales Mix %

Sensitivity Analysis

See how changes in costs and prices affect your break-even point

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Scenario Planning

Compare different business scenarios and their break-even points

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Break-Even Analysis Results

250
Break-Even Units
$8,750
Break-Even Revenue
57.1%
Contribution Margin
0%
Margin of Safety

Path to Profitability

Break-Even Point

At 250 units sold, your business will cover all costs and start generating profit

Target Profit

To reach your target profit of $2,000, you need to sell 350 units

Business Recommendations

  • Your break-even point is reasonable for your industry
  • Consider ways to reduce fixed costs to lower your break-even point
  • Explore opportunities to increase your contribution margin
  • Monitor your actual sales against the break-even point monthly
  • Develop a marketing plan to ensure you reach your break-even volume

What is Break-Even Analysis?

Break-even analysis determines the point where total revenue equals total costs. It's a critical tool for understanding the minimum sales needed to avoid losses.

Break-Even Formulas

Break-Even Units Fixed Costs ÷ (Price - Variable Cost)
Break-Even Revenue Fixed Costs ÷ Contribution Margin Ratio
Contribution Margin (Price - Variable Cost) ÷ Price
Margin of Safety (Actual Sales - Break-Even Sales) ÷ Actual Sales

Key Metrics Explained

Contribution Margin: The amount from each sale that contributes to covering fixed costs

Margin of Safety: How much sales can drop before reaching the break-even point

Break-Even Point: The sales volume where total revenue equals total costs

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