Find exactly when your business starts making profit
Enter your costs and pricing to find your break-even point
Calculate profit at different sales volumes
How many units do you need to sell to reach a specific profit goal?
Compare different pricing and cost scenarios side by side
Calculate break-even for businesses with multiple products
Formulas, concepts, and key terms explained
Costs that stay the same regardless of production volume: rent, salaries, insurance, depreciation.
Costs that change with production volume: raw materials, direct labor, shipping, packaging.
Amount each unit contributes to covering fixed costs and generating profit.
How much sales can drop before reaching break-even. Higher = more secure business.
| Industry | Typical CM Ratio | Break-Even Timeline |
|---|---|---|
| Software/SaaS | 70-85% | 12-24 months |
| Consulting Services | 60-75% | 6-12 months |
| Retail | 25-45% | 18-36 months |
| Restaurants | 55-65% | 12-24 months |
| Manufacturing | 20-40% | 24-48 months |
| E-commerce | 30-50% | 12-24 months |
Break-even analysis helps you understand when your business becomes profitable.
Lower your break-even point by adjusting these factors:
Break-even analysis has some assumptions:
Challenge yourself with these fun mini-games about break-even analysis!
Calculate break-even units as fast as you can!
Determine if the business is profitable!
Test your knowledge of business concepts!