Products
| Product | Price | Variable cost | Sales mix share, % | Remove row |
|---|---|---|---|---|
Result
Break-even revenue
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
A basic break-even calculation assumes a single product with a single margin. With several products at different margins, you need the mix's weighted contribution margin: each product's margin [(price − variable cost) ÷ price] is multiplied by its share of sales, and the results are summed.
Break-even revenue = fixed costs ÷ weighted mix margin. That's the revenue at which the combined contribution profit from every product together just covers fixed costs.
The result depends heavily on the assumed sales mix — if the actual mix shifts toward lower-margin products, the break-even threshold rises even if prices and costs haven't changed. It's best to use a realistic mix based on past actuals rather than a hoped-for one.