Product launch
Input: Fixed cost 5000000, price 50000, variable cost 30000
Result: Need enough units so contribution margin covers fixed cost
Break-Even Point (BEP) Analyzer
Calculate your break-even point and target sales quantity by entering fixed costs, variable costs, and selling price. Essential for business planning and analysis.
Cost & Price Input
Monthly fixed expenses like rent, labor, maintenance
Analysis Result
Break-Even Quantity
0 units
Break-even at $0 revenue
Contribution Margin Per Unit$0
Formula and decision logic
Break-even analysis shows how much sales volume is needed before total revenue covers total fixed and variable costs.
Break-even quantity = fixed cost / (selling price per unit - variable cost per unit)
Worked examples
Price change check
Input: Raise unit price or lower variable cost
Result: Break-even quantity falls when contribution margin improves
How to use this calculator
- 1Enter your fixed costs
- 2Enter the variable cost per unit and selling price per unit
- 3View the break-even point in units and revenue
How to read the result
- Break-even tells you when loss stops, not when the business becomes comfortably profitable.
- Small changes in contribution margin can sharply change the break-even point.
Common input mistakes
- Treating fixed costs and variable costs as the same type of cost.
- Judging product viability from sales price alone without contribution margin.
Frequently asked questions
What is a break-even point?
The break-even point is where total revenue equals total costs, meaning no profit or loss. It tells you how many units you need to sell.
Why is break-even analysis important?
It helps businesses determine the minimum sales needed to cover costs and start making a profit.
What are fixed vs variable costs?
Fixed costs remain constant regardless of production volume (rent, salaries). Variable costs change with production volume (materials, shipping).