Break-Even Analysis Calculator

Calculate break-even points for single or multiple products

Break-Even Analysis

Break-even analysis determines the point at which revenue equals costs, resulting in neither profit nor loss. It helps businesses understand the minimum sales required to cover all expenses.

Break-Even Point (Units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

For multiple products, the calculation considers the weighted average contribution margin based on the sales mix.

Analysis Type

Select whether you're analyzing a single product or multiple products:

Single Product
Multiple Products

Single Product Break-Even

Calculate the break-even point for a single product or service.

Cost Information

Pricing Information

Results

Break-Even Point: units

Break-Even Revenue:

Contribution Margin

Per unit contribution

Contribution Margin Ratio

Percentage of revenue

Expected Profit

At expected units

Calculation Details

Component Calculation Value
Contribution Margin Selling Price - Variable Cost
Break-Even Units Fixed Costs / Contribution Margin
Break-Even Revenue Break-Even Units × Selling Price

Multiple Product Break-Even

Calculate the break-even point for a business with multiple products, considering their sales mix.

Product Information

Product Selling Price ($) Variable Cost ($) Sales Mix % Action

Results

Total Break-Even Revenue:

Break-Even Sales Mix:

Product Break-Even Units Break-Even Revenue Contribution Margin

Weighted CM

Average contribution

Weighted CM Ratio

Percentage of revenue

Calculation Details

Component Calculation Value
Total Sales Mix Sum of all product mixes
Weighted Contribution Margin Sum of (CM × Mix%) for all products
Break-Even Revenue Fixed Costs / Weighted CM Ratio

Practical Examples

Example 1: Single Product

Fixed Costs: $10,000 | Variable Cost: $5 | Selling Price: $15

Contribution Margin: $10 | Break-Even: 1,000 units or $15,000 revenue

Example 2: Multiple Products

Fixed Costs: $20,000

Product A: $20 price, $12 cost, 60% mix

Product B: $30 price, $18 cost, 40% mix

Weighted CM: $8.80 | Break-Even: $22,727 revenue

Example 3: Service Business

Fixed Costs: $8,000 | Variable Cost: $2 per service | Price: $10 per service

Contribution Margin: $8 | Break-Even: 1,000 services or $10,000 revenue

Break-Even Analysis Interpretation

Scenario Business Implication Possible Actions
Current sales > Break-even Profitable operation Consider expansion or investment
Current sales ≈ Break-even No profit or loss Reduce costs or increase prices
Current sales < Break-even Operating at a loss Urgent cost reduction or sales increase needed