Break-Even Analysis Calculator

Determine the break-even point for marketing efforts.

Fixed Costs Variable Costs per Unit Selling Price per Unit

The Break-Even Analysis Calculator is a vital tool for businesses to determine the number of units that need to be sold to cover all costs. By analyzing fixed costs, variable costs per unit, and selling price per unit, you can identify the point at which total revenue equals total costs. This simple calculator provides quick insights into your break-even point.

How to Use This Calculator

Enter Fixed Costs: Input the total fixed costs of your business in the “Fixed Costs” field.

Enter Variable Costs per Unit: Input the cost incurred for each unit produced in the “Variable Costs per Unit” field.

Enter Selling Price per Unit: Input the price at which each unit is sold in the “Selling Price per Unit” field.

Calculate Break-Even Point: Click the “Calculate Break-Even Point” button to determine the number of units you need to sell to break even.

Copy or Download Result: Use the “Copy Result” or “Download Result” buttons to save your calculated break-even point for future reference.

Calculator Formula

The break-even point is calculated using the following formula:

$ \text{Break-Even Point} = \frac{\text{Fixed Costs}}{\text{Selling Price per Unit} – \text{Variable Costs per Unit}} $

This formula calculates the number of units that need to be sold to cover all costs.

Usage Examples

Example 1

Situation: You have fixed costs of $10,000, variable costs of $20 per unit, and a selling price of $50 per unit.

Fixed Costs: 10,000
Variable Costs per Unit: 20
Selling Price per Unit: 50

Calculation:

$ \text{Break-Even Point} = \frac{10,000}{50 – 20} = \frac{10,000}{30} = 333.33 \text{ units} $

Explanation: This means you need to sell approximately 334 units to cover all your fixed and variable costs.

Example 2

Situation: You have fixed costs of $5,000, variable costs of $15 per unit, and a selling price of $40 per unit.

Fixed Costs: 5,000
Variable Costs per Unit: 15
Selling Price per Unit: 40

Calculation:

$ \text{Break-Even Point} = \frac{5,000}{40 – 15} = \frac{5,000}{25} = 200 \text{ units} $

Explanation: In this case, you need to sell 200 units to cover your costs.

Calculate your break-even point with our Break-Even Analysis Calculator. Use it to make informed decisions and optimize your pricing and cost structure. Start analyzing your break-even point today!