Break-Even Analysis Calculator

Determine the minimum sales volume and revenue needed to cover fixed overheads, evaluate contribution margins, and compute your business margin of safety.

⚖️ Cost & Price Inputs

Total monthly fixed overhead costs $500,000

Selling price per unit $1,000

Variable cost per unit $400

Expected sales volume (Units) 1,500 units

Monthly recurring base income $100,000

Monthly income growth rate (%) 5% / mo

Break-Even Point (BEP)

BEP: — Units

This is the minimum number of units you must sell to generate zero net profit and zero loss.

Break-Even Revenue —

Unit Contribution Margin —

Break-Even Sales Units

—

Contribution Margin Ratio (PV)

—

Margin of Safety (MoS)
—

Unit Economics Split

Cost-Volume-Profit (CVP) Graph

Fixed costs, total cost line, and total revenue line intersection at BEP

12-Month Break-Even & Revenue Projection

Month	Base Income	Unit Sales	Revenue	Fixed Cost	Variable Cost	Total Cost	Net Profit

What is Contribution Margin?

Contribution Margin per Unit = Selling Price − Variable Cost. It represents the portion of sales price that directly covers fixed overhead costs.

Margin of Safety (MoS) Buffer

Margin of Safety measures how much sales can fall before your business begins incurring financial losses. A higher MoS percentage reduces business vulnerability.

Lowering Your Break-Even Point

You can lower your break-even volume by raising unit prices, negotiating cheaper raw materials (lower variable cost), or reducing fixed operating overheads.