How many units, or how much revenue, a business needs before it starts making a profit.
Costs
$80,000 fixed · $25/unit variable
Rent, salaries, insurance — costs that don't change with sales volume
$
Materials, direct labour — cost that scales with each sale
$
Selling price
$65/unit
$
Break-even point
0 units
Units needed to cover all costs
Break-even revenue: $0
Contribution margin: $0/unit
Margin ratio: 0%
Profit at different sales volumes
Know Your Business Break-Even Point?
Calculate the revenue needed to cover fixed and variable costs. Our accountants use this to set realistic targets, monitor business health, and identify profitability opportunities.
This is a simplified break-even model — it assumes a constant selling price and variable cost per unit at all volumes, and doesn't account for step-changes in fixed costs (e.g. needing to hire more staff or lease more space past a certain volume), tax, or financing costs. Refer to a registered tax or business adviser for a full feasibility analysis.
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In the meantime, feel free to keep adjusting the numbers above.
