Break-Even Calculator

Break-Even Calculator

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This Break-Even Calculator allows you to know exactly how many units you need to sell to cover all of your business costs such as costs of goods, rent, wages, and so on. Break-even means when your business reaches a point where the profits are equal to the costs.

Costs Per Unit = How much money a business spends on producing one unit of the product they sell

Revenue Per Unit = Retail price of one unit of the product that a business is selling for

Fixed Costs = Business costs such as lease/rent, utilities, wages, insurance, and so on

How to calculate break-even point?

Formula to find how many units to sell to break-even:

Number of Units = Fixed Costs / (Revenue Per Unit - Costs Per Unit)

Formula to find revenue to earn to break-even:

Total Revenue = (Revenue Per Unit * Fixed Costs) / (Revenue Per Unit - Costs Per Unit)

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