Break-even Calculator

Break-Even Calculator

Calculate break-even units, required revenue, profit targets, and margin of safety

Total Fixed Costs ($) Rent, salaries, software, insurance

Selling Price per Unit ($) Retail or contract price

Variable Cost per Unit ($) Materials, direct labor, shipping

Break-Even Sales Volume

400 Units

Break-Even Revenue: $20,000

Unit Contribution Margin $30.00 Price minus variable cost

Contribution Margin Ratio 60.0% Contribution margin ÷ Price

Variable Cost Ratio 40.0% Variable cost ÷ Price

Fixed Cost per Unit at B/E $30.00 Fixed costs ÷ B/E units

Total Fixed Costs ($)

Desired Net Profit Target ($)

Selling Price per Unit ($)

Variable Cost per Unit ($)

Required Sales for Target Profit

600 Units

Required Revenue: $30,000

Total Recovery Pool $18,000 Fixed costs + Desired profit

Units Beyond Break-Even +200 Units Units dedicated to profit

Total Variable Costs $12,000 Variable cost × Target units

Net Profit Margin 20.0% Target profit ÷ Total revenue

Total Fixed Costs ($)

Projected / Actual Sales (Units)

Selling Price per Unit ($)

Variable Cost per Unit ($)

Margin of Safety Ratio

27.3%

+150 Units Buffer Low Risk

Margin of Safety ($) $7,500 Sales drop before loss

Break-Even Units 400 Units Zero-profit baseline

Projected Revenue $27,500 Forecasted sales turnover

Projected Operating Profit $4,500 Net earnings at forecast