Break-even calculator
How many units, and how much revenue, before your business starts making money?
Break-even Calculator
Find the sales you need to cover your costs, and to hit a profit target.
Need professional assistance?
KasemCPA can review your numbers, build the model properly or set it up in Odoo.
Contribution margin
Price − variable cost per unit. What each sale contributes towards fixed costs.
Break-even units
Fixed costs ÷ contribution margin per unit.
Break-even sales
Break-even units × price, or fixed costs ÷ contribution margin ratio.
Margin of safety
How far expected sales can fall before you make a loss.
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FAQ
What counts as a fixed cost?
Costs that do not change with sales volume in the short term: rent, salaried staff, software subscriptions, insurance and loan repayments.
How can I lower my break-even point?
Raise prices, cut variable costs per unit (better purchasing, less waste), or reduce fixed overheads.