Break-Even Calculator
Calculate the sales volume needed to cover your costs and start making a profit.
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Understanding Break-Even
The break-even point is where your total revenue equals your total costs. At this point, there is zero profit and zero loss.
- Fixed Costs: Expenses that stay the same regardless of sales volume (e.g., rent, insurance, salaries).
- Variable Costs: Costs that vary directly with sales volume (e.g., materials, shipping, packaging).
- Contribution Margin: Price per unit minus Variable cost per unit. This amount contributes to covering fixed costs.