Break-Even Analysis Calculator - Business Economics

Rent/Lease ($):

Salaries ($):

Insurance ($):

Other Fixed Costs ($):

Variable Cost per Unit ($):

Selling Price per Unit ($):

Target Units to Analyze:

Total Fixed Costs: $0.00

Contribution Margin per Unit: $0.00

Contribution Margin Ratio: 0%

Break-Even Point (Units): 0 units

Break-Even Point (Revenue): $0.00

Profit at Target Units: $0.00

Margin of Safety: 0%

Fixed Costs: Expenses that remain constant regardless of production volume (rent, salaries, insurance).

Variable Costs: Costs that change with production volume (materials, labor per unit).

Contribution Margin: Revenue per unit minus variable cost per unit. This covers fixed costs and generates profit.

Break-Even Point: The sales volume where total revenue equals total costs (no profit, no loss).

Margin of Safety: How much sales can decline before reaching the break-even point.

Formula: Break-Even Units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit)