Break-Even Calculator

How this is calculated

Break-even is the point where total revenue equals total cost, so profit is zero. Every figure below is your input; nothing here is a promise or a benchmark.

If you enter your actual monthly volume, the calculator also shows your margin of safety, the cushion between what you sell and what you need to break even:

What to keep in mind

• Contribution margin must be positive. If variable cost per unit is at or above price, you lose money on every unit and there is no break-even point at that price.
• Fixed vs variable is a judgment call. Costs that scale with volume belong in variable cost; costs that hold steady each month belong in fixed. Misclassifying them shifts the answer.
• It is a snapshot. Break-even assumes one price and one cost structure. Discounts, product mix, and step-changes in fixed cost all move the line.
• Break-even units round up. You cannot sell a fraction of a unit, so the displayed figure is rounded up to the next whole unit.

To turn recovered capacity into a dollar figure, see the manufacturing ROI calculator. To find where hidden cost is hiding on the floor, start with the OEE calculator and the downtime cost calculator, or read the lean manufacturing guide.