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Break-Even Point

Finds how many units you must sell to cover costs.

Interactive inputs coming — use the formula and example below.

Exemple concret

Fixed costs of $10,000 with $20 margin per unit break even at 500 units.

Comment l'utiliser

  • Use the formula below with your own figures.

La formule

Break-even units = fixed costs ÷ (price − variable cost).

Exemple concret

Fixed costs of $10,000 with $20 margin per unit break even at 500 units.

Questions fréquentes

Why know it?

It sets your minimum viable sales.

What lowers it?

Higher margins or lower fixed costs.

Conseils

  • Know your break-even before scaling spend.
  • Separate margin from markup when pricing.
  • Discount future cash flows to value projects.

Termes clés

Break-even
Where revenue covers costs.
Margin
Profit as a percent of price.
NPV
Discounted value of future cash flows.