Break-Even Calculator for Small Businesses
Find out how many units you need to sell, and how much revenue you need, to cover your fixed costs and reach a profit target.
Your numbers
Calculations run in your browser. Nothing you enter is sent to or stored by AccoTiva.
Results
—Contribution margin per unit
—Contribution margin ratio
—Break-even units / month
—Break-even revenue / month
—Units for target profit
—Margin of safety (expected units)
How the break-even calculation works
Each unit you sell contributes its selling price minus its variable cost. That contribution margin pays for fixed costs such as rent, salaries and software. Break-even units equal fixed costs divided by contribution margin per unit. Adding a target profit to fixed costs shows the volume needed to reach that goal.
Using the result
- If break-even volume looks unrealistic, test a higher price or lower variable cost.
- A thin margin of safety means a small drop in sales could cause a loss.
- Use figures from reconciled books. Misclassified costs distort contribution margin.
Related: management accounting, 13-week cash flow forecast.
Want numbers you can rely on every month?
A tool is only as good as the books behind it. AccoTiva keeps your records reconciled so calculations like this reflect reality.