Break-Even Analysis Calculator
Calculate your break-even point in units and revenue. See how many sales you need to cover fixed costs and start profiting.
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Monthly Whole Units to Cover Costs
Estimated • Based on your inputs
Monthly Revenue at Whole-Unit Break-Even
$83,350.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
Monthly single-product model: contribution = unit price minus variable unit cost. Minimum whole units = ceiling(monthly fixed costs / positive contribution). Revenue at that whole-unit threshold = units × price. Monthly operating profit = monthly sales × contribution minus monthly fixed costs; annual profit assumes 12 identical months. Sales margin of safety uses the unrounded monthly sales-dollar break-even threshold (fixed costs / contribution-margin ratio). With no positive contribution there is no finite break-even in this model. At zero target sales the safety percentage is not defined. This is cost-volume operating break-even before interest and tax, not recovery of an initial investment or a months-to-payback forecast.
Find monthly operating break-even for one product
- 1
Use one month throughout
Enter recurring monthly fixed costs. Enter selling price and variable cost for one unit, then your expected units sold per month. Do not mix annual rent with monthly sales.
- 2
Check unit contribution first
Price minus variable cost must be positive to cover fixed costs. Otherwise the results explicitly show no finite break-even; increasing sales cannot cure a nonpositive unit contribution.
- 3
Separate thresholds from target profit
Minimum whole units are rounded up. The monthly operating-profit output instead uses your expected monthly units; the annual figure assumes the same costs and volume repeat for all twelve months.
- 4
Read the safety percentage carefully
Margin of safety compares target monthly sales dollars with the continuous monthly break-even threshold. It is not defined without target sales. It does not measure cash reserves or investment payback.
Read the inputs and reconcile the outputs
Hypothetical single-product worksheet: a candle sells for $28, variable cost is $9 per candle, monthly fixed costs are $2,400 and target monthly sales are 200. These chosen inputs are not market data.
Each unit contributes $19. Dividing $2,400 by $19 gives 126.315789 units, so at least 127 whole units are required, producing $3,556.00 revenue. Selling only 126 contributes $2,394 and leaves $6 of fixed costs uncovered.
Result: At 200 units, monthly revenue is $5,600, variable costs are $1,800 and operating profit before interest and tax is $1,400.00. Twelve identical months give $16,800.00 operating profit. The continuous-threshold sales margin of safety is 36.8%. At a hypothetical $56 price with unchanged $9 variable cost, the minimum becomes 52 units ($2,912.00 revenue), not a prediction that demand will hold.
What changes this estimate
Whole units
Rounding down can leave costs uncovered. The displayed threshold rounds units up; the safety ratio uses the exact continuous threshold.
Cost and volume assumptions
Changing price can change demand and cost per unit. This worksheet holds the entered unit costs and recurring fixed costs constant.
Limits and checks before acting
- Use the SBA single-product monthly cost-volume framework. For multiple products, build a weighted sales-mix model separately.
- Include variable commissions, packaging and transaction fees once in unit cost; separate costs that recur regardless of volume.
- This operating threshold excludes debt interest, tax and recovery of startup investment. A cash-flow forecast needs payment dates and working capital.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is a break-even analysis?
A break-even analysis determines the sales volume at which total revenue equals total costs. Below this point you're losing money; above it, you're profitable. It helps businesses set pricing, forecast profitability, and evaluate new product viability.
What is contribution margin?
Contribution margin is the selling price minus variable costs per unit. It represents the portion of each sale that contributes toward covering fixed costs and eventually generating profit. A higher contribution margin means fewer units needed to break even.
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