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Breakeven Analysis Calculator

Instructions & Definitions

How to Use the Breakeven Analysis Calculator

1. Fill in the "Fixed Costs" field:

  • Identify and calculate all the fixed costs associated with your business or project.
  • Examples of fixed costs include rent, utilities, salaries, insurance, and other expenses that remain constant.
  • Enter the total amount of fixed costs in the "Fixed Costs" field.

2. Fill in the "Variable Costs per Unit" field:

  • Determine the variable costs incurred for each unit of your product or service.
  • Variable costs fluctuate based on the number of units produced and sold.
  • Include costs such as raw materials, production costs, packaging, and shipping.
  • Enter the average variable cost per unit in the "Variable Costs per Unit" field.

3. Fill in the "Selling Price per Unit" field:

  • Set the selling price for each unit of your product or service.
  • Consider market demand, competition, and your desired profit margin when determining the selling price.
  • Enter the selling price per unit in the "Selling Price per Unit" field.

4. Fill in the "Units Sold" field (optional):

  • If you have already sold a specific number of units, enter that number in the "Units Sold" field.
  • If you want to calculate the break-even point without specifying units sold, you can leave this field empty.

5. Review the Break-Even Result:

  • The "Break-Even Result" section will display the number of units you need to sell in order to break even.
  • It will indicate the minimum quantity of units required to cover your fixed costs.

6. Analyze the Profit Analysis Table:

  • The calculator will generate a table that provides a breakdown of costs, revenue, and net profit at different levels of units sold.
  • Each row represents a specific number of units sold.
  • The table includes columns such as Units, Variable Costs, Total Costs, Total Revenue, and Net Profit.
  • Analyze the table to gain insights into the financial performance and profitability based on different sales volumes.

7. Adjust Inputs or Clear the Calculator (optional):

  • If you want to explore different scenarios, you can adjust the input values for fixed costs, variable costs, selling price, or units sold.
  • To start fresh or make adjustments, click the "Clear" button.
  • This will reset all input fields and clear the generated results.

Field Descriptions:

Input Fields

Fixed Costs: This field represents the total fixed costs associated with your business or project. Fixed costs are expenses that do not vary with the number of units sold. Enter the amount of fixed costs in this field.

Variable Costs per Unit: Variable costs are expenses that vary depending on the number of units sold. This field represents the variable costs incurred for each unit sold. Enter the amount of variable costs per unit in this field.

Selling Price per Unit: The selling price per unit is the price at which you sell each unit of your product or service. Enter the selling price per unit in this field.

Units Sold: Enter the number of units you have sold or anticipate selling. This field represents the quantity of units sold.


Table Fields

Break-Even Result: This section will indicate the number of units you need to sell in order to break even. It will provide the minimum quantity of units required to cover your fixed costs.

Profit Analysis Table: This table provides a breakdown of the costs, revenue, and net profit at different levels of units sold. Each row represents a specific number of units sold. The table includes the following columns:

Units: The number of units sold.

Variable Costs: The total variable costs incurred for the corresponding number of units sold, displayed with two decimal places.

Total Costs: The sum of fixed costs and variable costs for the corresponding number of units sold, displayed with two decimal places.

Total Revenue: The total revenue generated by selling the corresponding number of units, displayed with two decimal places.

Net Profit: The net profit calculated as the difference between total revenue and total costs, displayed with two decimal places.

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