A Break-even analysis is telling you that how many units or products need to sell to cover all of your costs. It is referred to as the point at which total cost and total revenue are equal.
The Break-even analysis helps to calculate markup, how many units need to sell, per-unit revenue, and the total revenue of the products.
The formulas for calculating break-even analysis is as follows:
Firstly, calculate per unit revenue (means selling price of the unit): per unit revenue = per unit cost / (1 - margin)
for, markup = (per unit revenue - per unit cost) * 100 / per unit cost
We have to sell, number of units = fixed cost / (per unit revenue - per unit cost)
for, total revenue = per unit revenue * fixed cost / (per unit revenue - per unit cost)
What can you do with Break-Even Calculator?
- It helps to calculate the break-even analysis based on total revenue and units.
- Users can see the accurate total revenue, units, markup and per unit revenue. And also can see the total revenue in words.
- The chart represents the growth between the per unit cost and per unit revenue.
- This calculator helps to share your calculations by URL.