Break Even Calculator

Break-Even Calculator

Break-Even Calculator by GIGAcalculator.com

When operating a business, one of the most important analytical tools you will come to use is the break-even analysis. The B/E point is a metric that shows you how much sales you need to reach before you begin realizing profit. In other words, it is the moment when your total costs are finally covered by your total revenue. [1]

Our break-even calculator is a useful tool to refer to when determining prices for the goods and services you offer, deciding on budgets or simply working on a business plan. It will generate a break-even point chart based on the inputs.

A break-even analysis relies on three crucial aspects of a business operation – selling price of a unit, fixed costs and variable costs. Your fixed costs are not influenced by the amounts you sell. A fixed cost, for example, is your rent. On the other hand, variable costs are largely dependent on the volume of work at hand – if you have more clients, you will need more labor and materials which results in an increase in variable expenses.