Monthly Break-Even Calculator
Calculate how many units you need to sell or revenue you need to earn each month to break even.
Enter fixed costs, variable cost, and price per unit.
Monthly Break-Even Point
Monthly break-even analysis determines the minimum sales needed each month to cover all costs, with zero profit or loss.
Key formulas:
Contribution Margin = Price per Unit - Variable Cost per Unit
Break-Even Units = Monthly Fixed Costs / Contribution Margin
Break-Even Revenue = Break-Even Units x Price per Unit
Contribution Margin Ratio:
CM Ratio = Contribution Margin / Price per Unit
Break-Even Revenue = Monthly Fixed Costs / CM Ratio
Common monthly fixed costs include:
- Rent / lease payments
- Salaries (non-commission)
- Insurance
- Loan payments
- Software subscriptions
- Utilities (base amount)
Variable costs per unit include:
- Materials / COGS
- Shipping per unit
- Sales commissions
- Payment processing fees
- Packaging
Interpretation:
- Below break-even = operating at a loss
- At break-even = covering costs exactly
- Above break-even = every additional unit is profit equal to the contribution margin