Break-Even — Guide
Find the sales volume needed to cover fixed and variable costs.
Estimated reading time: 2 minutes
What it does
Calculates the point where your total revenue equals total costs, helping you understand minimum sales needed to avoid losses.
Inputs
- Fixed Costs (rent, salaries, insurance)
- Variable Cost per Unit (materials, labor)
- Price per Unit (selling price)
Output
- Break-even units
- Break-even revenue
Example
Fixed costs: $10,000/month, Variable cost: $20/unit, Price: $50/unit → Need to sell 334 units to break even.
Tip
Use this calculator to pricing decisions and set realistic sales targets.