How It Works
Three simple steps to get accurate calculations
1
Enter Your Costs
Input your fixed costs (rent, salaries) and variable costs per unit (materials, labor).
2
Set Your Price
Enter the selling price per unit of your product or service.
3
Get Results
Instantly see your breakeven point, contribution margin, and profitability metrics.
Loading Breakeven Analysis...
Frequently Asked Questions
What is a breakeven point?
The breakeven point is the level of sales at which total revenues equal total costs, resulting in neither profit nor loss. It's the minimum number of units you must sell to cover all your business expenses.
How is contribution margin calculated?
Contribution margin is calculated by subtracting variable costs per unit from the selling price per unit. It represents how much each sale contributes to covering fixed costs and generating profit.
Why is breakeven analysis important?
Breakeven analysis helps you understand the minimum sales volume needed for profitability, set realistic sales targets, make pricing decisions, and assess the financial viability of new products or services.
What are fixed costs vs variable costs?
Fixed costs remain constant regardless of production volume (rent, insurance, salaries). Variable costs change with production volume (raw materials, direct labor, shipping costs).
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Results are estimates for informational purposes only. Consult professionals for important decisions.