Breakeven Analysis

Calculate exactly how many sales you need to break even and start making profit. Free breakeven analysis tool with instant results for any business.

Key Benefits:

  • Instant breakeven point calculation
  • Contribution margin analysis
  • Profit planning insights
  • Risk assessment for new products
  • Pricing strategy optimization
  • Investment decision support

Business Parameters

Enter your costs and pricing to calculate your breakeven point and profitability.

Share Your Scenario

Copy link with your current inputs

Business cost and pricing inputs
$

Total fixed costs that do not change with production volume (rent, salaries, etc.) Examples: $5,000 (small business), $15,000 (medium business)

$

Costs that vary directly with each unit produced (materials, labor, etc.) Examples: $3 (simple product), $25 (complex product)

$

Selling price per unit of your product or service Must be higher than variable cost to be profitable

Example: Coffee Shop

• Fixed Costs: $8,000/month (rent, utilities, staff)

• Variable Cost: $2.50/cup (coffee, milk, cup)

• Selling Price: $5.00/cup

Result: Need to sell 3,200 cups/month to break even

Breakeven Analysis Results

Your calculated breakeven metrics and key performance indicators.

Breakeven Point (Units)

Key Metric
1,000 units

Number of units you need to sell to break even

Breakeven Revenue

Key Metric
$15,000.00

Total revenue needed to break even

Contribution Margin

$10.00

Profit per unit after variable costs

Contribution Margin Ratio

66.7%

Percentage of each sale that contributes to fixed costs

Key Insights

Understanding your breakeven analysis results.

You need to sell at least 1,000 units to cover all your costs and start making profit.

Each unit sold contributes $10.00 towards covering your fixed costs.

Your contribution margin ratio of 66.7% means 66.7% of each sale goes toward fixed costs and profit.

Frequently Asked Questions

What is a breakeven point?

The breakeven point is the level of sales at which total revenues equal total costs, resulting in neither profit nor loss. It's the minimum number of units you must sell to cover all your business expenses.

How is contribution margin calculated?

Contribution margin is calculated by subtracting variable costs per unit from the selling price per unit. It represents how much each sale contributes to covering fixed costs and generating profit.

Why is breakeven analysis important?

Breakeven analysis helps you understand the minimum sales volume needed for profitability, set realistic sales targets, make pricing decisions, and assess the financial viability of new products or services.

What are fixed costs vs variable costs?

Fixed costs remain constant regardless of production volume (rent, insurance, salaries). Variable costs change with production volume (raw materials, direct labor, shipping costs).

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Results are estimates for informational purposes only. Consult professionals for important decisions.