Calculate break-even points, margins, and profitability analysis. Essential for business planning and pricing decisions.
Rent, salaries, insurance, etc.
Materials, direct labor, packaging, etc.
Leave empty for basic break-even analysis
Calculate profit and margin of safety at specific volume
Break-even analysis determines the point at which total revenue equals total costs, resulting in neither profit nor loss. It's a crucial tool for business planning and pricing decisions.
Break-even point = Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit). This gives you the number of units you need to sell to cover all costs.
Fixed costs remain constant regardless of production volume (rent, salaries, insurance). Variable costs change with production volume (materials, direct labor, packaging).
Break-even analysis helps businesses set pricing strategies, evaluate profitability, plan production levels, and make informed decisions about new products or services.