Break-Even Point Calculator

Our free break even analysis calculator is designed for small businesses owners to quickly determine how many units you need to sell to cover your costs

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Instruction: How to Use the Break-Even Point Calculator

1. Enter Fixed Costs

These are costs that do not depend on production volume (e.g., rent, administrative salaries, utilities).

Example:

100,000 currency.

2. Enter Variable Costs per Unit

These are costs that vary depending on production volume (e.g., materials, packaging, delivery).

Example:

500 currency per unit.

3. Enter the Price per Unit

This is the price at which you sell one unit of a product or service.

Example:

1,000 currency per unit.

4. Click the "Calculate" Button

The calculator will automatically compute the break-even point.

5. View the Result

The screen will display the number of units you need to sell to break even (cover all costs).

Example:

"Break-even point: 200 units".

6. Analyze the Graph (if available)

If the calculator supports graphs, you will see a visualization:

  • Total cost line.
  • Revenue line.
  • The intersection point is the break-even point.

Example Calculation

Suppose you have the following data:

  • Fixed costs: 100,000 currency.
  • Variable costs per unit: 500 currency.
  • Price per unit: 1,000 currency.

Formula for calculation:

Break-even point = Fixed Costs / (Price per Unit - Variable Costs per Unit)

Substituting the values:

Break-even point = 100,000 / (1,000 - 500) = 200 units

Tips

If you want to increase profits, consider:

  • Reducing fixed or variable costs.
  • Increasing the price per unit.

Use the calculator to analyze different scenarios (e.g., "What happens if I reduce the price by 10%?").