Break-Even and Target Profit Calculator
See how many units and how much revenue you need to cover all costs — and to reach your target profit.
Results
Contribution margin per unit
Selling price minus variable cost. This is the amount each unit sold leaves to cover fixed costs and generate profit. —
Contribution margin ratio (%)
Contribution margin per unit as a percentage of the selling price. —
Break-even point (units)
How many units you need to sell per month to cover all costs — profit is zero and there is no loss. —
Break-even point (revenue)
The same, expressed as sales revenue. —
Glossary of terms
- Fixed costs (monthly)
- Costs that do not depend on sales volume and that you pay every month even if you sell nothing — rent, administrative salaries, loan interest, subscription fees.
- Variable cost per unit
- A cost added to every unit sold that rises as sales grow — raw materials, purchase price of goods, packaging, sales commission.
- Selling price per unit
- The price at which you sell one unit (excluding VAT).
- Target profit (monthly)
- The profit you want to earn per month after covering all costs.
- Contribution margin per unit
- Selling price minus variable cost. This is the amount each unit sold leaves to cover fixed costs and generate profit.
- Contribution margin ratio (%)
- Contribution margin per unit as a percentage of the selling price.
- Break-even point (units)
- How many units you need to sell per month to cover all costs — profit is zero and there is no loss.
- Break-even point (revenue)
- The same, expressed as sales revenue.
- Units required for target profit
- How many units you need to sell per month to earn the specified profit.
- Revenue required for target profit
- The same, expressed as sales revenue.
Results are indicative and do not constitute financial advice.