Break-Even Point Calculator 2025 – Business Profit Analysis
Calculate break-even point for your business or investment. Determine sales volume needed to cover fixed and variable costs.
Break-Even Point Calculator 2025 – Business Profit Analysis
Introduction
The Break-Even Point is when total revenue equals total costs—you're not losing money, but not making profit either. It's a critical milestone for businesses and investments.
Formula: Break-Even Units = Fixed Costs / (Price - Variable Cost per Unit)
Example: Coffee Shop
Costs
- Fixed Costs: $10,000/month (rent, salaries, insurance)
- Variable Cost per Coffee: $2 (beans, milk, cup)
- Selling Price: $5 per coffee
Break-Even Calculation
Break-Even = $10,000 / ($5 - $2) = 3,334 coffees/month
Interpretation: You need to sell 111 coffees per day just to break even. Any sales beyond that are profit.
Break-Even in Dollars
Formula: Break-Even Revenue = Fixed Costs / Contribution Margin Ratio
Contribution Margin Ratio = (Price - Variable Cost) / Price
Example:
- Contribution Margin = ($5 - $2) / $5 = 60%
- Break-Even Revenue = $10,000 / 0.60 = $16,667/month
FAQ
Q: What if I sell multiple products? A: Use a weighted average contribution margin based on your sales mix.
Q: How do I lower my break-even point? A: Reduce fixed costs, lower variable costs, or raise prices.
Related Tools
- ROI Calculator: /calculator/108-roi-return-on-investment-calculator-2025
Conclusion
Knowing your break-even point prevents you from underpricing or overspending. It's Business 101.