Break-Even Analysis Calculator
Calculate break-even point, profit analysis, and margin of safety. Essential for business planning and pricing decisions.
Inputs
Results
Break-Even Units
1,000
Break-Even Revenue
$15,000.00
≈ 8 gaming PCs
Profit
$5,000.00
≈ 5 smartphones
How to Use This Calculator
- Enter your fixed costs (rent, salaries, insurance) for the period.
- Set variable cost per unit and selling price per unit.
- Enter units sold to see actual profit and margin of safety.
- Review Break-Even Units, Break-Even Revenue, Profit, CM Ratio, and Margin of Safety.
How the result changes with Price Per Unit
| Price Per Unit | Break-Even Units | Break-Even Revenue | Profit |
|---|---|---|---|
| $1,000.00 | 10.05 | $10,050.25 | $1,482,500.00 |
| $3,500.00 | 2.86 | $10,014.31 | $5,232,500.00 |
| $6,500.00 | 1.54 | $10,007.70 | $9,732,500.00 |
| $9,000.00 | 1.11 | $10,005.56 | $13,482,500.00 |
What each input means
- Fixed Costs
- Total fixed costs per period
- Variable Cost Per Unit
- Variable cost per unit
- Price Per Unit
- Selling price per unit
- Units Sold
- Current or projected units sold
What each result means
- CM Ratio %
- Contribution margin ratio — the percentage of each dollar of revenue available to cover fixed costs after variable costs
- Margin of Safety
- How far sales can drop before reaching the break-even point, expressed as a percentage of current sales
How this is calculated
Formula
Break-Even Units = Fixed Costs / (Price - Variable Cost)Worked example, using the default values
- Identify Input Parameters4 parametersFixed Costs = 10000, Variable Cost Per Unit = 5, Price Per Unit = 15, Units Sold = 1500 = 4 input(s) provided
- Calculate Break-Even UnitsBreak-Even Units1000 = 1000
- Calculate Break-Even RevenueBreak-Even Revenue15000 = $15,000
- Calculate ProfitProfit = revenue5000 = $5,000
- Calculate Profit MarginProfit Margin22.22222222222222 = 22.22222222222222%
- Calculate CM Ratio %CM Ratio %66.66666666666666 = 66.66666666666666%
Engine last updated .
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