Finance Tools
What It Does
Calculates the number of units you need to sell to cover your fixed and variable costs — the break-even point — in any of 46 supported currencies. Shows the contribution margin, break-even revenue, and an optional target profit calculation. Includes a price sensitivity table so you can see how changing your selling price affects the break-even point. Export your results to CSV or Excel for business planning.
How to Use It
- Enter your total fixed costs (rent, salaries, equipment, etc.).
- Enter the variable cost per unit (materials, labor per unit, delivery, etc.).
- Enter the selling price per unit (how much you charge per unit).
- Optionally enter a target profit to see how many units you need beyond break-even.
- Select your currency from the dropdown (defaults to USD).
- Click “Calculate” to see results, or “Clear” to reset.
- Use “Copy Results”, “Export CSV”, or “Export Excel” to save or share the analysis.
Options Explained
| Option | Description |
|---|---|
| Fixed costs | Total costs that don't change with production volume — rent, salaries, insurance, equipment depreciation. These must be covered regardless of how many units you sell |
| Variable cost per unit | Cost incurred for each additional unit produced — raw materials, direct labor per unit, shipping per unit. Increases proportionally with volume |
| Selling price per unit | The amount you charge customers for each unit. Must be higher than the variable cost to generate a positive contribution margin |
| Target profit | An optional profit goal above breaking even. Set to 0 for a pure break-even analysis, or enter a dollar amount to see how many additional units you need to sell to reach your profit target |
| Currency | The currency for all monetary values — affects the symbol shown on all amounts and the formatting (e.g., ¥ for JPY uses 0 decimals). This does not perform any conversion |
| Export CSV | Downloads a .csv file with the summary and price sensitivity table — ideal for spreadsheets or data analysis |
| Export Excel | Downloads an .xlsx file with the same data formatted for Microsoft Excel or compatible applications |
About Break-Even Analysis
Break-even analysis is a fundamental business tool that determines the point at which total revenue equals total costs — meaning no profit and no loss. It answers the essential question: “How many units do we need to sell to cover all our costs?”
The contribution margin is the amount each unit contributes toward covering fixed costs after variable costs are deducted. A higher contribution margin means fewer units are needed to break even. The contribution margin ratio shows what percentage of each sale goes toward covering fixed costs and generating profit.
Use the price sensitivity table to understand how even small pricing changes can dramatically affect your break-even point. A 10% price increase can sometimes reduce the required units by 20% or more, depending on your cost structure. This analysis is invaluable for pricing decisions, product launches, and business planning.
Common Use Cases
- Determining how many units a new product must sell to cover costs
- Evaluating whether a price increase or decrease improves profitability
- Assessing the viability of a business idea before launch
- Planning production volumes for manufacturing decisions
- Comparing different pricing strategies and their impact on margins
- Setting sales targets for new product lines or seasonal campaigns
What Is Break-Even Analysis?
Break-even analysis calculates the exact point at which total revenue equals total costs, resulting in neither profit nor loss. The formula divides fixed costs by the contribution margin per unit (selling price minus variable cost per unit). Fixed costs remain constant regardless of output (rent, salaries, insurance), while variable costs scale with production (materials, shipping, commissions). The break-even point tells a business owner the minimum sales volume needed to cover all expenses. Beyond this point, every additional unit sold generates profit equal to its contribution margin. This analysis is fundamental to pricing strategy, product launch decisions, and financial planning.
Frequently Asked Questions
What are fixed vs. variable costs?
Fixed costs stay the same regardless of production volume (rent, insurance, salaried staff). Variable costs change proportionally with output (raw materials, shipping, sales commissions). The break-even formula requires separating the two.
How does pricing affect the break-even point?
A higher price increases the contribution margin per unit, which lowers the number of units needed to break even. Even a small price increase can significantly reduce the required sales volume, assuming demand is not overly price-sensitive.
Can break-even analysis be used for services?
Yes. For service businesses, the “unit” might be an hour of consulting, a project, or a subscription. Fixed costs are overhead, and variable costs are per-engagement expenses like subcontractor fees or materials.