Business break-even calculator

Your business

Scenario period

All costs and volume refer to the selected period. Changing periods keeps your inputs; adjust them for your new scenario.

Fixed costs for the period

CAD

Rent, insurance and other costs independent of volume. Include fixed salaries and employer costs here; volume-dependent payroll belongs in variable costs.

Average selling price per unit

CAD

Average variable cost per unit

CAD

A unit can be a product, an order, a billable hour or a service. Include every cost linked to that sale: purchases, commissions, shipping and variable labour.

Expected volume · units

Profit target before income tax

CAD

Your result

Minimum sales to cover your costs · Per month

$25,000

Minimum volume: 250 units
Contribution per unit: $60
Contribution rate: 60 %
Units below break-even: 0

At your expected volume

Sales: $50,000
Variable costs: $20,000
Fixed costs: $15,000
Profit before income tax: $15,000

To reach your target

Required volume: 417 units
Required sales: $41,700

Your target is met at the expected volume.

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View Details

Volume sensitivity · prices and costs unchanged · Per month
Scenario	Units	Sales	Total costs	Profit before income tax
−20 %	400	$40,000	$31,000	$9,000
Your scenario	500	$50,000	$35,000	$15,000
+20 %	600	$60,000	$39,000	$21,000

Method and sources

Unit contribution = price − variable cost. The minimum number of units to cover fixed costs is rounded up. For a target, divide fixed costs + desired profit by unit contribution. Required sales use that whole-unit volume, and expected profit = volume × contribution − fixed costs.

Constant prices and costs, one product or a stable average sales mix. Do not include a cost in both fixed and variable costs. This profit before income tax is not a bank balance: payment delays, taxes, investments and principal repayments are not modelled.

BDC · Break-even point