Break Even Calculator
Find your break-even point — the minimum sales needed to cover all costs before making a profit. Essential for any business plan.
Quick Calculator Get a fast estimate
R
R
R
Break-Even Units
1 000 units
Break-Even Revenue
R 80 000
Contribution Margin per Unit
R 50
Contribution Margin Ratio
62.50%
Fixed Costs to Cover
R 50 000
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How to Use This Calculator
Enter your monthly fixed costs, the variable cost per unit, and your selling price per unit. The calculator shows how many units you must sell to break even each month.
Break-Even Formula
Contribution Margin = Selling Price − Variable Cost per Unit
Break-Even Units = Fixed Costs ÷ Contribution Margin
Break-Even Revenue = Break-Even Units × Selling Price
Need more detail?
Extended Calculator More options, charts, and scenario comparison
R
R
R
Break-Even Units
421 units
Break-Even Revenue
R 125 630
Contribution / Unit
R 119
CM Ratio
39.8%
Break-Even Chart
Example Calculation
Cape Town Bakery
Fixed costs: R25,000/month. Variable cost per loaf: R12. Selling price: R35.
Contribution Margin = R35 − R12 = R23 per loaf
Break-Even Units = R25,000 ÷ R23 = 1,087 loaves/month
Break-Even Revenue = R38,043/month
Fixed vs Variable Costs
| Fixed Costs (same each month) | Variable Costs (per unit/sale) |
|---|---|
| Rent and rates | Raw materials / stock |
| Permanent staff salaries | Packaging and labels |
| Insurance premiums | Sales commissions |
| Loan repayments | Delivery and shipping |
| Subscriptions and licences | Transaction fees |
Need full precision?
Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown
Fixed Costs & Target
R
R
Product Lines (Multi-Product)
| Product | Price | Var Cost | Sales Mix % | CM | |
|---|---|---|---|---|---|
| % | 39.8% | ||||
| % | 49.7% |
Weighted Break-Even
793 units
Break-Even Revenue
R 189 307
Weighted CM Ratio
42.3%
Target Profit Units
1 090
Target Revenue
R 260 297
Sensitivity Analysis (Fixed Cost Changes)
| Fixed Cost Change | Fixed Costs | Break-Even Units | Break-Even Revenue |
|---|---|---|---|
| -30% | R 56 000 | 555 | R 132 515 |
| -20% | R 64 000 | 634 | R 151 446 |
| -10% | R 72 000 | 713 | R 170 376 |
| Current | R 80 000 | 793 | R 189 307 |
| +10% | R 88 000 | 872 | R 208 238 |
| +20% | R 96 000 | 951 | R 227 168 |
| +30% | R 104 000 | 1 030 | R 246 099 |
| +50% | R 120 000 | 1 189 | R 283 960 |
Fixed vs Variable Cost Optimizer
Converting fixed costs to variable costs lowers your break-even but reduces margin at scale. This table shows the trade-off.
| Variable % of Fixed | New Fixed | Added Var Cost/Unit | Break-Even Units |
|---|---|---|---|
| Current (all fixed) | R 80 000 | — | 793 |
| 10% shifted | R 72 000 | R 10 | 793 |
| 20% shifted | R 64 000 | R 20 | 793 |
| 30% shifted | R 56 000 | R 30 | 793 |
| 40% shifted | R 48 000 | R 40 | 793 |
| 50% shifted | R 40 000 | R 51 | 793 |
Frequently Asked Questions
The break-even point is where total revenue equals total costs — neither profit nor loss. It is the minimum performance your business must achieve to survive. Below break-even you are losing money; above it, every extra unit generates profit.
Fixed costs stay constant regardless of sales volume — rent, insurance, permanent staff salaries. Variable costs change with every unit produced — raw materials, packaging, sales commissions, delivery costs.
You can lower break-even by reducing fixed costs, reducing variable costs, or increasing your selling price. Increasing price is the most powerful lever — even a 10% price rise can dramatically reduce break-even units.
Yes. Define your "unit" as one hour, one job, or one project. The selling price is your rate, and variable costs include materials, contractor fees, or time-based expenses.