What is a Break-Even Point?

The break-even point is when total revenue equals total expenses. At this point, there is zero profit and zero loss.

How is Break-Even calculated?

Break-Even Units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). This formula helps determine sales targets.

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Survival Analysis Tool

Break-Even Boundary

Identify the precise moment your project turns a profit. Analyze fixed costs, variable expenses, and unit contribution margins.

Costs & Prices

Fixed Costs ($)

Rent, salaries, software, etc.

Price per Unit ($)

Variable Cost per Unit ($)

Materials, shipping, labor per item.

Units to Sell

34

items to break even

Break-Even Revenue

$1666.67

Contribution Margin

$30.00

per unit sold

Economic Equilibrium

The break-even point (BEP) in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal. A break-even point analysis is essential for any business to determine the minimum sales volume required to cover all operating costs.

Fixed Base

Costs that remain constant regardless of production level, such as rent, insurance, and executive salaries.

Variable Flow

Costs that vary directly with production volume, including raw materials, direct labor, and shipping fees.

Margin Strategy

Reducing your break-even point increases your safety margin. This is typically achieved by reducing fixed overhead or increasing the contribution margin per unit.

Input Costs

Point Alpha

Net Profit

Point Omega

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