Enter your fixed costs and unit economics to find the sales volume where you stop losing money and start making a profit.
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Your break-even point is where total revenue equals total cost. Below it you make a loss; above it, profit. Knowing it tells you the minimum sales you need and how much a price or cost change moves the goalposts.
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is your contribution margin — the profit each unit adds toward covering fixed costs.
It is the selling price minus the variable cost of one unit. It is the amount each sale contributes toward fixed costs and, once those are covered, to profit.