What is a Break-Even Point?

The break-even point is the sales volume (in units or dollars) at which total revenue equals total costs, resulting in zero profit and zero loss.

How is unit break-even calculated?

Break-Even Units = `Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)`.

Contribution margin is the selling price per unit minus variable cost per unit. It represents the portion of sales that covers fixed overhead.

Yes, you can input a target net profit goal to see exact required sales units.

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Calculate unit sales and revenue required to reach break-even profitability.

Fixed Costs ($/mo)

Selling Price per Unit ($)

Variable Cost per Unit ($)

Break-Even Unit Sales

250 Units

Break-Even Revenue: $25,000

Contribution Margin: 60% ($60 / unit)