Find the exact volume where your business starts making money.
Calculated by NexaVolt — free, for any business.
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Your break-even point is the sales volume at which total revenue exactly covers total costs — below it you make a loss, above it you make a profit. It's driven by your contribution margin: the selling price per unit minus the variable cost per unit, which is what each sale contributes toward covering fixed costs.
Enter your fixed costs, variable cost per unit and selling price to get your break-even point in units and in revenue, your contribution margin, and how many units you'd need to hit a target profit.
Enter your fixed costs.
Add variable cost per unit and selling price.
See your break-even point in units and revenue.
Test profit at different volumes.
It's the number of units (or amount of revenue) at which your total costs equal your total revenue, so profit is zero.
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is your contribution margin per unit.
It's the selling price minus the variable cost per unit — the money each sale contributes toward fixed costs and, once those are covered, profit.
Then every sale loses money and you can never break even. The tool flags this so you can raise the price or cut the variable cost.