Break-Even Analysis – Fixed Cost, Variable Cost, Profit Margin Calculator
Calculates the break-even point, margin of safety and profit using fixed costs, variable costs and unit selling price.
Info
Break-even analysis shows how many units a business must sell to **cover its costs without making a loss**. With this calculator you can see: - By entering fixed costs and variable costs per unit, - The **contribution margin** based on unit selling price, - The **break-even unit count** and **break-even revenue**, - The expected **profit / loss** at your chosen target sales volume, - The **margin of safety** relative to your target sales. Particularly useful when: - Setting prices, - Answering "how many units do I need to sell at these costs?", - Understanding the profit impact before a campaign or discount. Note: This tool is a simple single-product (or average-product) break-even analysis; advanced topics such as tax, multi-product mix and capacity constraints are not included.
- The break-even point is the sales level where total revenue equals total cost; profit = 0.
- If sales are above the break-even point the business is profitable; below it means a loss.
- Contribution margin = Unit Selling Price – Unit Variable Cost; it is used to cover fixed costs.
- Margin of safety shows how far the target sales level is above the break-even level (both in units and %).
- This analysis is suitable for simple short-term, fixed-price and fixed-cost scenarios.
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