Break-even Calculator
Calculate contribution margin, break-even units, and required sales.
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How to calculate break-even sales
The break-even point is the sales level where revenue covers both fixed and variable costs, leaving no profit and no loss. This calculator helps restaurants, cafés, food stalls, and small shops estimate how many units they need to sell or how much revenue they need to reach before the business starts making a profit.
Start with monthly fixed costs such as rent, payroll, utilities, software fees, and equipment costs. Then enter the selling price and the variable cost per unit, such as ingredients, packaging, delivery commission, or payment fees.
Formula or logic
- Contribution margin per unit = Selling price - Variable cost per unit
- Break-even units = Fixed costs ÷ Contribution margin per unit
- Break-even revenue = Break-even units × Selling price
Example
If fixed costs are 120,000, the selling price is 100, and the variable cost per unit is 40, the contribution margin is 60. The break-even quantity is 2,000 units, so the required revenue is 200,000.
Common questions
What counts as a fixed cost?
Common fixed costs include rent, base payroll, equipment leases, insurance, subscription fees, and minimum utility costs. They usually do not change immediately when one more unit is sold.
What is a variable cost?
Variable costs increase with sales volume, such as ingredients, packaging, delivery platform commissions, and payment processing fees.
What if the break-even quantity is too high?
A high break-even quantity may mean the price, cost structure, rent, staffing plan, or product mix needs to be reviewed.