Break-Even Analysis Calculator

Calculate your break-even point to understand how many units you need to sell or how much revenue you need to cover your costs. Toggle between product-based and service-based modes for the most relevant analysis.

Fixed Costs

$

Rent, salaries, insurance, loan payments, etc.

Product Details

$
$

For margin of safety calculation

Quick Tips

  • Break-even = Fixed Costs / (Price - Variable Cost per Unit)
  • Include all fixed costs (rent, salaries, insurance)
  • Variable costs change with each unit sold
  • Lower break-even point = lower risk
  • Use this to evaluate pricing and cost changes

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How to Use This Calculator

Choose product mode (enter price per unit and variable cost per unit) or service mode (enter variable cost as a percentage of revenue). Then enter all fixed costs: rent, insurance, salaries, loan payments, and other recurring overhead. The calculator shows the exact revenue or unit volume needed to break even, your current margin of safety, and a monthly break even timeline. Use this when evaluating whether a business you are considering buying can sustain a drop in revenue before becoming unprofitable.

Frequently Asked Questions

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