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Break-Even Analysis Terminal

Strategic financial planning tool for determining profitability thresholds and unit economics.

Net Profit $0
Break-Even Day 0
ROI —
Margin of Safety 0%
Status --
Quick Presets
Unit Economics
$
$
Overhead & Capital
$
$
What-If Sliders ▸
Performance Projection
Unit Price Breakdown: $0
0%
0%
VC $0    CM $0
Loss Zone Profit Zone Break-Even
Sensitivity Matrix
Monthly Projection (12 Periods)
Period Revenue Total Cost Net P&L Cumulative P&L
Break-Even Reality
BEP Units
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BEP Revenue
--
Time to Break Even
-- days
Based on selected sales period
Sales Rate Needed to Break Even
--
per day
--
per week
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per month
--
Unit Economics
Op. Leverage
--
Contrib. Margin
--
CM Ratio
--
Payback
--
Safety Factor
--
0%
CapEx Recovery
Project ROI
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Scenarios
Adjust inputs, then save to compare scenarios.

How to Use This Calculator

1

Enter Fixed Costs

Input all fixed costs: rent, salaries, insurance, loan payments, and other expenses that do not change with sales volume.

2

Enter Unit Economics

Input the selling price per unit and variable cost per unit (materials, shipping, commissions, etc.).

3

Find Break-Even Point

See the exact number of units and dollar amount of revenue needed to cover all costs and begin generating profit.

Formula & Methodology

Break-Even Units

BEP (units) = Fixed Costs / (Price − Variable Cost per Unit)

The number of units to sell before profit begins.

Break-Even Revenue

BEP ($) = Fixed Costs / Contribution Margin Ratio

Contribution Margin Ratio = (Price − Variable Cost) / Price.

Contribution Margin

CM = Selling Price − Variable Cost per Unit

The amount each unit sold contributes toward covering fixed costs.

About this calculation · Accuracy & Methodology

Key Terms

Break-Even Point
The sales volume where total revenue equals total costs — profit is zero.
Fixed Costs
Costs that remain constant regardless of production or sales volume (rent, salaries, insurance).
Variable Costs
Costs that change proportionally with each unit produced or sold (materials, shipping, commissions).
Contribution Margin
Revenue per unit minus variable cost per unit — the profit available to cover fixed costs.
Margin of Safety
Current sales minus break-even sales, expressed as a percentage — the buffer before losses begin.

Real-World Examples

Example 1

Product Launch

Fixed Costs: $45,000/mo, Price: $79, Variable Cost: $23

CM: $56/unit. Break-even: 804 units/mo or $63,482 in revenue.

Example 2

Service Business

Fixed Costs: $18,000/mo, Hourly Rate: $150, Variable Cost: $35/hr

CM: $115/hr. Break-even: 157 billable hours/mo or $23,478 in revenue.

Break-Even Sensitivity to Pricing

PriceVariable CostContribution MarginBreak-Even Units ($50K Fixed)
$49$20$291,724 units
$69$20$491,021 units
$89$20$69725 units
$99$20$79633 units
$129$20$109459 units

Understanding Your Break-Even Point

Why Break-Even Analysis Matters

Every business needs to know its break-even point before launching a product, signing a lease, or hiring staff. It answers the fundamental question: how much do I need to sell to stop losing money? If your break-even requires 2,000 units/month but your market research suggests maximum demand of 1,500, the business model needs to change before you invest.

Lowering Your Break-Even

Three levers reduce break-even: raise prices (increases contribution margin), reduce variable costs (better suppliers, automation), or cut fixed costs (remote work, shared space). A 10% price increase on a product with 50% margin reduces break-even by 17%. Lowering variable costs by 10% has a similar effect. The most powerful strategy is often raising prices, since it has zero additional cost.