Breakeven Calculator
Calculate the point where revenue equals total costs
$
Rent, salaries, utilities
$
Selling price
$
Materials, labor per unit
Breakeven Point
834
units to sell
Breakeven Revenue
$83,333.33
revenue needed
Contribution Margin
$60.00
per unit
Contribution Margin Ratio
60.0%
of revenue
Profit by Units Sold
| Year | Balance |
|---|---|
| 0 units | -$50,000.00 |
| 84 units | -$44,960.00 |
| 168 units | -$39,920.00 |
| 252 units | -$34,880.00 |
| 336 units | -$29,840.00 |
| 420 units | -$24,800.00 |
| 504 units | -$19,760.00 |
| 588 units | -$14,720.00 |
| 672 units | -$9,680.00 |
| 756 units | -$4,640.00 |
| 840 units | $400.00 |
| 924 units | $5,440.00 |
| 1008 units | $10,480.00 |
| 1092 units | $15,520.00 |
| 1176 units | $20,560.00 |
| 1260 units | $25,600.00 |
| 1344 units | $30,640.00 |
| 1428 units | $35,680.00 |
| 1512 units | $40,720.00 |
| 1596 units | $45,760.00 |
Horizontal axis: Units sold | Vertical axis: Profit/Loss
Breakeven Formula
Contribution Margin = Price - Variable Cost
= $100.00 - $40.00 = $60.00
Breakeven Units = Fixed Costs ÷ Contribution Margin
= $50,000.00 ÷ $60.00 = 834 units
Profit Analysis
| Units Sold | Revenue | Total Costs | Profit/Loss |
|---|---|---|---|
| 416 | $41,600.00 | $66,640.00 | -$25,040.00 |
| 625 | $62,500.00 | $75,000.00 | -$12,500.00 |
| 834 (Breakeven) | $83,400.00 | $83,360.00 | +$40.00 |
| 1,042 | $104,200.00 | $91,680.00 | +$12,520.00 |
| 1,250 | $125,000.00 | $100,000.00 | +$25,000.00 |
| 1,667 | $166,700.00 | $116,680.00 | +$50,020.00 |
To Double Profit Target
1,667 units
Revenue: $166,666.67
Margin of Safety
If you sell 1,250 units:
33.3% margin of safety
Key Terms
- Fixed Costs
- Costs that don't change with production volume (rent, salaries, insurance)
- Variable Costs
- Costs that change with each unit produced (materials, direct labor, shipping)
- Contribution Margin
- Amount each unit contributes to covering fixed costs and generating profit
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