Finds the sales volume at which revenue equals total costs.
The break-even calculator finds the sales volume at which total revenue exactly covers total costs — no profit, no loss.
Break-even units = Fixed costs / (Price per unit − Variable cost per unit) Break-even revenue = Fixed costs / Contribution margin ratio Contribution margin = Price − Variable cost
Fixed costs $12,000/month, price $80/unit, variable cost $30/unit. Contribution margin = $50. Break-even = 12000/50 = 240 units/month.
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