Break-Even Calculator - the foundation of every pricing + capacity decision.
Break-even units = fixed costs / (price per unit minus variable cost per unit). Below it you lose money; above it you profit. Enter your costs and price to find the exact unit and dollar break-even point.
Every expansion, every price change, every new product decision should start here. CVP analysis tells you where revenue covers cost - and how much room you have before you slip into a loss.
Your numbers (monthly)
SimpleGrid runs break-even live - per product, per line, per customer.
Every new product line, pricing change, or capex decision should start with a CVP analysis. ERP gives you the real numbers (fixed + variable), not your best guess from last quarter's P&L.
Book a demoBreak-even is the start, not the finish
The break-even point tells you where revenue covers cost. The Margin of Safety tells you how much room you have before you slip into a loss. Operating Leverage tells you how sensitive profit is to volume changes. Together they describe the resilience of your business model.
What the numbers actually mean
- Contribution margin per unit = price minus variable cost. Every unit above break-even adds this much to operating profit.
- CM ratio = CM as % of price. Every $1 of revenue contributes this percentage toward fixed costs and profit.
- Margin of safety = volume above break-even, expressed as % of current volume. 20%+ is healthy.
FAQ
Should overhead labor count as fixed or variable?
Salaried supervisors = fixed. Hourly direct labor = variable (you cut hours when volume drops). Hybrid (salaried with OT scaling to volume) = blend. Be honest about which is which - it changes break-even by 20-40% in mid-market shops.
Does this work for multi-product businesses?
Yes, but use the weighted-average CM ratio. Or do break-even per product line. Don't lump together: your low-margin product might be subsidizing your high-margin one, which is a different management problem than overall break-even.