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Break-Even Calculator
Find the exact revenue point where your business covers all costs and starts generating real profit.
What Is Break-Even Analysis?
Break-even analysis determines the point at which total revenue equals total costs: the moment your business stops losing money and starts making it. Below break-even, every sale still loses money after covering fixed costs. Above it, every sale generates profit.
The Break-Even Formula
Break-Even Units = Fixed Costs / (Price per Unit − Variable Cost per Unit). The denominator is called the contribution margin, the amount each sale contributes toward covering fixed costs. The higher your contribution margin, the fewer units you need to sell to break even.