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Break-even calculator
Find the number of sales needed to cover your monthly costs and reach a profit target.
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The starting numbers are an example. Use one currency throughout. Currency selection changes the display, not the amounts.
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What does break-even actually mean?
Break-even is the point where sales cover the fixed and variable costs you entered. Each sale contributes its selling price minus its variable cost toward your monthly fixed costs.
Divide fixed costs by the contribution per item, then round up to a whole item. You cannot sell part of an item to cover the last fraction of your costs. The profit-target calculation adds your target profit to fixed costs before dividing.
Example
With monthly fixed costs of 1,000, a price of 50 and variable costs of 30, each sale contributes 20. You need 50 sales to break even and 75 sales to reach a 500 profit target.
The model assumes one product, constant pricing and constant unit costs. It does not predict whether customers will buy that quantity, or account for cash-flow timing, financing or tax.