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Break-Even Analysis Calculator

Break-even units
2,500
Break-even revenue
$100,000.00
CM ratio
50.00%
Contribution margin / unit$20.00
Units for target profit3,500
Revenue for target profit$140,000.00
Note0

How to use the Break-Even Analysis Calculator

  1. Enter fixed costs per period (rent, salaries, subscriptions).
  2. Enter price per unit and variable cost per unit (COGS).
  3. Optionally add a target profit.
  4. Read break-even units, break-even revenue, contribution margin, and units needed for target profit.
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Contribution margin is the number every founder should memorise

Contribution margin (price − variable cost) is what each sale contributes toward fixed costs and profit. Under 30% → hard to scale.

Software has 90%+ contribution margin — that's why SaaS valuations are so high. Restaurants sit at 25–35% — every seat has to work harder.

Break-even shifts fast: a 10% price cut can double the units needed to break even. Test pricing before you cut it 'to move volume'.