Business
Break-Even Analysis
Units and revenue needed to cover fixed costs.
Your numbers
Break-even units
3,273
- Contribution margin / unit
- $55.00
- Contribution margin ratio
- 45.8%
- Break-even revenue
- $392,727
- Units for target profit
- 4,364
Break-even assumes your fixed costs and margins hold steady. Owner draws, loan principal, and taxes are not expenses on the income statement but they still have to come out of the same till.
Break-Even Analysis explained simply
Break-even is the moment a business stops losing money and starts earning it. This tells you how many things you need to sell to get there.
For example
Rent and bills cost $5,000 a month. Each item sells for $50 and costs you $20 to make, so you keep $30. You need about 167 sales a month to break even.
Words on this page
Want a second set of eyes on these numbers?
These calculators are estimates for planning purposes and don't account for every detail of your situation. Bring your results to us and we'll pressure-test them against your actual tax picture.
Talk to a CPA