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Break-even Calculator

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Find the sales quantity and revenue needed to cover fixed and variable costs. Compare a sales scenario with the break-even point.

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A visual example

What each additional sale contributes

  1. One unit
    PartAmount
    Price50.00
    Variable cost30.00
    Contribution20.00
    01

    One unit

    The model keeps price and variable cost constant.

  2. Fixed costs: 1,200
    UnitsResult
    50−200.00
    600.00
    75300.00
    02

    Fixed costs: 1,200

    Result = quantity × 20 − 1,200.

60 units cover the entered costs; this is not a demand forecast.

Illustrative example. Synthetic numeric example. Not current data from your business.

How to use it

  1. 1Choose one period and currency, then enter its fixed costs.
  2. 2Enter selling price and variable cost per unit. Add a planned sales quantity to inspect a scenario.
  3. 3Review contribution, break-even quantity and revenue, and the scenario result. Export the assumptions together with the calculation.

Example: fixed costs of 1,200, price 50 and variable costs 30 give contribution 20 and break-even at 60 units. At 75 units, the model gives 300 operating profit before omitted costs and tax.

Details & limits

Single-product model for one consistent period and currency. Constant price and variable unit costs; no forecasts, financing or automatic tax calculation.

What happens if variable cost is at least the selling price?

There is no positive contribution to cover fixed costs, so a normal break-even sales target cannot be calculated. The model uses a constant price and variable cost for one product or a consistent equivalent unit. Mixes of products, capacity limits, financing and taxes need separate consideration. A calculated sales target is not a demand forecast.

A sales threshold based on your assumptions

One sale contributes the selling price minus its variable costs toward fixed costs. Divide fixed costs by that contribution to find the break-even quantity. Keep every input in the same period and avoid treating a partial unit as a completed sale. Changing demand, product mix or capacity can make the simplified model unsuitable.

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