Costs and price
Sales plan
Result
Break-even point
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How far sales can fall before you drop into a loss
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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
Contribution margin per unit = price − variable cost. It is what each sale contributes towards fixed costs. Until they are covered the business runs at a loss; after that the whole contribution becomes profit.
Break-even in units = fixed costs ÷ contribution margin per unit. In money, multiply by the price. A fractional result is always rounded up: you cannot sell half a unit.
Safety margin = (planned volume − break-even volume) ÷ planned volume × 100%. It shows how far sales can drop before a loss. Below 20% the plan sits uncomfortably close to zero.
If the price is below the variable cost, the contribution is negative and no break-even point exists — growing volume is pointless, every sale only deepens the loss. Only a higher price or lower variable cost helps.