Calculate break-even volume and revenue from fixed and variable costs.
Break-even depends on contribution margin rather than gross margin, since only the variable cost scales with volume. A negative contribution margin means no volume can reach break-even. The margin of safety matters more than the break-even point itself, because it measures how much demand can fall before the business loses money.
Break-Even
Break-even units = fixed costs ÷ (price − variable cost per unit)
Break-even units = fixed costs ÷ (price − variable cost per unit) Break-even depends on contribution margin rather than gross margin, since only the variable cost scales with volume. A negative contribution margin means no volume can reach break-even.
The margin of safety matters more than the break-even point itself, because it measures how much demand can fall before the business loses money.
This calculator takes 4 inputs: Monthly fixed costs, Price per unit, Variable cost per unit, Current monthly volume. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.