About Breakeven Calculator

Calculates breakeven point, target profit requirements, and margin of safety from fixed costs, variable cost per unit, and selling price. Uses contribution margin math—selling price minus variable cost—to determine how many units cover your fixed costs. Includes price sensitivity analysis at ±5% and ±10% to show how small pricing changes affect your breakeven point. Three industry presets (DTC e-commerce, SaaS, café) populate realistic starting values.

• Contribution margin = selling price – variable cost per unit; breakeven units = fixed costs ÷ contribution margin
• Three calculation modes: basic breakeven, target profit ((fixed costs + target profit) ÷ contribution margin), and margin of safety ((current sales – breakeven) ÷ current sales × 100)
• Price sensitivity table shows breakeven at ±5% and ±10% price changes—reveals how razor-thin margins amplify unit requirements
• Industry presets: DTC e-commerce ($50 price, $20 variable, $5,000 fixed), SaaS ($29/mo, $3 variable, $8,000 fixed), Café ($5 price, $1.50 variable, $3,000 fixed)
• Live reactive calculations via useMemo—results update instantly as you adjust any input

Frequently Asked Questions

What counts as a fixed cost vs. variable cost?

Fixed costs don’t change with volume: rent, salaries, insurance, software subscriptions. Variable costs scale per unit: materials, shipping, payment processing fees, sales commissions. If it stays the same whether you sell 1 or 1,000 units, it’s fixed.

Why is the price sensitivity analysis useful?

Because small price changes have outsized effects on breakeven. A 10% price drop on a product with 30% margins can nearly double the units you need to sell. The sensitivity table makes this visible before you commit to a discount or pricing change.