Business
Break Even Calculator
Find break-even point.
Break-even: revenue = costs.
Formula
BE = Fixed/(Price-Variable). Contribution margin = Price-Variable.
Fixed vs Variable
- Fixed: rent, salaries
- Variable: materials, shipping
Example
$5K fixed. $50 price. $30 variable. BE = 250 units.
Frequently Asked Questions
Break-even?
Revenue=costs. Below=loss. Above=profit.
BE units?
Fixed÷(price-variable). $5K÷($50-$30)=250.
Contribution margin?
Price-variable cost. Each sale covers fixed costs.