Break-Even Calculator

The break-even point is the sales volume at which total revenue equals total costs — meaning zero profit and zero loss. Above this point every unit sold generates profit; below it you operate at a loss.

Contribution margin = Selling price per unit − Variable cost per unit. It represents how much each unit sold contributes toward covering fixed costs. Once fixed costs are fully covered, the contribution margin becomes pure profit.

Three levers: (1) Reduce fixed costs (rent, salaries), (2) Reduce variable costs per unit (materials, shipping), (3) Increase selling price. Even small improvements on all three compound to significantly lower break-even.