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    Break-even Calculator
    Break-even Analysis

    Understanding Break-even Analysis

    Break-even point is where total revenue equals total costs (fixed + variable).

    Break-even Units = Fixed Costs ÷ Contribution Margin

    Contribution Margin = Selling Price - Variable Costs

    Key Components

    • • Fixed Costs: Constant expenses
    • • Variable Costs: Per-unit expenses
    • • Selling Price: Revenue per unit
    • • Contribution Margin: Profit per unit
    • • Margin of Safety: Buffer above break-even

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