Calculate break-even units, required revenue, and contribution margin to eliminate business risk.
The Break-Even Calculator determines the exact sales volume in units and gross revenue required to cover all operating fixed overheads and variable unit costs, establishing the threshold where net business profit transitions from negative to positive.
Enter your total recurring fixed costs for the period (salaries, office rent, software, utilities).
Enter your variable cost per unit (raw materials, production, packaging, sales commissions).
Enter your selling price per unit.
Optionally set a target sales unit forecast to evaluate projected net profit or loss above the break-even threshold.
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You must sell 100 items ($5,000 in total sales) each month to pay all your bills before you make a profit.
Every item you sell beyond #100 gives you $30 in pure take-home profit.