Break-even calculator
Enter fixed monthly costs, selling price and variable cost per unit to calculate break-even sales and units.
- Equivalence point in units
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- Sales breakeven point
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- Percentage of contribution margin
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- Margin of Safety
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Equation
Equivalence point in units = Fixed expenses ÷ (Sale Price) − variable cost per unit). And breakeven point by sales = Fixed expenses ÷ Percentage of contribution margin.
What are the fixed and variable expenses?
Fixed is paid whether you sell or not: rent, salaries and subscriptions. The variable increases with each sale: the cost of goods, shipping and sales commissions.
Margin of Safety
Is the distance between your current sales and breakeven point. 30% safety margin means that your sales can fall 30% before you start losing.
Frequently asked questions
What should I do if my sales are below breakeven?
Three levers: raise the price, lower the variable cost, or lower the fixed expenses. Try each of them in a what if’ emulator within the MIYAR program.
Does MIYAR automatically calculate the break-even point?
Yes, right from your books: it classifies Cost of sales as variable and the rest of the expenses as fixed, giving you breakeven point and profit start day of the month.