Break-Even Analysis Calculator
Calculate your break-even point and understand when your business becomes profitable
Quick examples:
Rent, salaries, insurance - costs that don't change with sales
Materials, labor per unit - costs that increase with each sale
Selling price for each unit
How Break-Even Analysis Works
Break-even analysis helps you understand how many units you need to sell to cover all costs. Once you exceed this point, your business becomes profitable. This is essential for pricing strategies and business planning.
Key Concepts
- Fixed Costs: Expenses that stay the same regardless of sales volume
- Variable Costs: Expenses that increase with each unit produced/sold
- Contribution Margin: Amount each sale contributes to covering fixed costs
- Break-Even Point: Where total revenue equals total costs (zero profit)
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