Total Fixed Costs ($)
Variable Cost per Unit ($)
Selling Price per Unit ($)
Result (click to copy)
Frequently Asked Questions
What is the break-even point?
The break-even point is where total revenue equals total costs — profit is zero. Below it, you're making a loss. Above it, you're profitable. BEP (units) = Fixed Costs ÷ (Price - Variable Cost per Unit).
What is contribution margin?
Contribution Margin = Selling Price − Variable Cost per Unit. It's how much each unit sold contributes toward covering fixed costs. After fixed costs are covered, each unit sold generates profit equal to the contribution margin.
How do I use break-even analysis?
Use it before launching a product to see if it's financially viable. If the break-even quantity seems unrealistically high, either reduce fixed costs, reduce variable costs, or increase the selling price.