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Break-Even Calculator
Units needed to cover fixed costs.
Enter values to see your result
Frequently asked questions
What's contribution margin?
Price − variable cost. The amount each unit "contributes" toward covering fixed costs. High CM% = scales profit fast after break-even.
Fixed vs variable costs?
Fixed: rent, salaries, insurance (don't change with volume). Variable: raw materials, commissions, packaging (scale with sales).
Why does break-even matter?
Minimum operating threshold. Below it, business loses money regardless of sales. Key metric for pricing, hiring, and expansion decisions.
What is "margin of safety"?
How far actual sales exceed break-even. 20% margin of safety means 20% sales drop still leaves you breaking even. Higher = lower risk.