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Breakeven Analysis

You know what you've spent on inventory and supplies, and you know what you're charging for each item. Now you need to find out exactly how many units you need to sell in order to break even and begin to earn a profit from your business. Get an accurate determination with our Break-Even Analysis Calculator.

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+ Read Breakeven Analysis Definitions

Breakeven Analysis Definitions

Variable unit cost: Cost associated with producing an additional unit.
Fixed cost: The sum of all costs required to produce any product. This amount does not change as production increases or decreases.
Expected unit sales: The number of units that are expected to be sold.
Price: Price you will be able to receive per unit.
Total variable costs: The product of units produced and variable unit cost (example 10 units at $5 variable cost produces a total variable cost of $50).
Total costs: Sum of fixed costs and variable costs.
Total revenue: Product of price and expected sale unit sales (example 10 units at $10 equals $100 total revenue).
Profit: Total revenue minus total costs.
Breakeven: Number of units required to sell to make a profit of zero.

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