Inputs

$

Rent, salaries, insurance - costs that don't change with volume

$

Materials, labor - costs that change with each unit

$
$

Desired profit amount beyond break-even

units

Expected or planned unit sales volume

Results

Break-Even Point

400 units

$20,000.00 revenue

Contribution Margin

$25.00

50.0% ratio

Units for Target Profit

600 units

$30K

Safety Margin

20.0%

Safety %

100 units

$5K

Cost Structure

Fixed Costs:$10,000.00
Variable Cost per Unit:$25.00
Selling Price per Unit:$50.00

Price Sensitivity Analysis

ChangePriceMarginBreak-Even Units
-20%$40.00$15.00667
-10%$45.00$20.00500
0%$50.00$25.00400
+10%$55.00$30.00334
+20%$60.00$35.00286

💡 Focus on increasing contribution margin through higher prices or lower variable costs

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Guide

How to Use This Calculator

  1. Enter total fixed costs (rent, salaries, etc.)
  2. Input variable cost per unit
  3. Set selling price per unit
  4. Add target profit if desired
  5. Review break-even analysis results

Key Concepts

  • • Fixed Costs: Don't change with sales volume (rent, salaries)
  • • Variable Costs: Change with each unit sold (materials, commissions)
  • • Contribution Margin: Selling price minus variable costs per unit
  • • Safety Margin: Units above break-even point

Break-Even Tips

  • • Include all fixed costs accurately
  • • Consider seasonal variations
  • • Plan for margin of safety