How to use (3 steps)
- Choose whether you want the break-even point, required sales for a target profit, or profit at a planned volume.
- Enter selling price, variable cost per unit, and fixed costs for the same period (for example, per month). Add a target profit or planned volume if needed.
- Results update automatically. Use “Copy URL” to share the same setup.
Currency symbol is cosmetic only; numbers use what you type.
Inputs
Use one representative product. Fixed costs are the total for the period (rent, payroll, tools, etc.).
Break-even results
Break-even quantity (rounded up)
Add a planned sales volume to see profit and safety margin.
You need 0 units to break even.
How it’s calculated
This calculator uses standard break-even formulas so the logic stays transparent.
- Contribution margin = selling price − variable cost.
- Contribution margin ratio = contribution margin ÷ selling price.
- Break-even quantity = fixed costs ÷ contribution margin.
- Required quantity for a target profit = (fixed costs + target profit) ÷ contribution margin.
- Profit at a volume = (selling price − variable cost) × quantity − fixed costs.
The tool focuses on one product (or an average unit). Taxes, financing, and step changes in fixed costs are outside the scope.
FAQ
What is the margin of safety?
The margin of safety tells you how far your planned sales are above the break-even point in units, sales amount, and percentage. If it is negative, your plan is below break-even and you would make a loss at that volume.
What counts as fixed costs and variable costs?
Fixed costs are expenses that do not change with the number of units sold in the period you chose (for example, rent, salaries, software subscriptions, insurance). Variable costs change with each unit sold (materials, shipping, payment fees, per-unit sales commissions). Enter the amounts that match your business for that period.
How should I choose the period (per month, per year, etc.)?
You can use any period (month, quarter, year) as long as you are consistent. Fixed costs, target profit, and the sales volume should all refer to the same period. If you double the length of the period, fixed costs and target profit typically double as well.
What is the difference between the three modes?
Break-even mode shows the units and sales where profit is exactly zero. Target profit mode shows the units and sales needed to reach a specific profit amount. Planned volume mode calculates profit and margin of safety for the sales volume you plan.
Can this calculator handle multiple products or taxes?
The calculator is designed for one product or an average unit. To approximate multiple products, you can compute a weighted average selling price and variable cost and enter those values. Taxes, discounts, and step changes in fixed costs are not included automatically and should be adjusted outside the tool.
Is my data stored or sent to a server?
All calculations run in your browser only. The numbers you type are not sent to a server as personal data. When you want to share a scenario, you can deliberately use the “Copy URL” button to send the setup to someone else.
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