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Every business needs to know its break even point, the exact moment when revenue equals costs and you stop losing money. This break even calculator makes it simple. Enter your monthly fixed costs such as rent, salaries, insurance, and software subscriptions. Add the variable cost you pay for each unit you sell, like materials, packaging, and shipping. Then set your selling price. The calculator instantly shows how many units you must sell and how much revenue you need to cover all your costs.
The contribution margin is the difference between your selling price and your variable cost per unit. It tells you how much each sale contributes toward covering your fixed costs. A higher contribution margin means you reach profitability faster. The contribution margin ratio, expressed as a percentage, shows what fraction of every revenue dollar goes toward covering fixed costs and generating profit. Use these numbers to evaluate pricing strategies and compare products.
Want to understand your profit margins? Try our profit margin calculator. Need to figure out the right markup? Use the markup calculator.
Refine your pricing strategy with the profit margin calculator, understand the difference between markup and margin using the markup calculator, or measure investment returns with our ROI calculator.