💰 Break-Even Calculator
📈 Single Product Analysis
🔄 Sensitivity Analysis
📦 Multiple Product Analysis
❓ Frequently Asked Questions
What is break-even analysis?
Break-even analysis determines the point at which your business's total revenue equals total costs, resulting in neither profit nor loss. It's a crucial tool for understanding business viability and pricing strategies.
What are fixed costs vs. variable costs?
Fixed costs remain constant regardless of production volume (rent, salaries, insurance). Variable costs change with production volume (materials, direct labor, shipping per unit).
How do I use the sensitivity analysis?
The sensitivity analysis shows how changes in costs or pricing affect your break-even point. Use the sliders to see the impact of increasing or decreasing each factor by up to 50%.
What is contribution margin?
Contribution margin is the selling price minus variable cost per unit. It represents how much each unit sold contributes to covering fixed costs and generating profit.
How does multiple product analysis work?
For businesses with multiple products, the analysis considers the sales mix (percentage of total sales for each product) to calculate a weighted average break-even point.
Why is break-even analysis important?
It helps determine minimum sales targets, evaluate pricing strategies, assess business viability, plan for profitability, and make informed decisions about cost structures.
What happens after the break-even point?
Every unit sold beyond the break-even point contributes directly to profit at the contribution margin rate. The further above break-even, the more profitable your business becomes.
How often should I recalculate break-even?
Recalculate whenever costs change significantly, when adjusting prices, launching new products, or at least quarterly to ensure your business targets remain accurate.