Free Tool

Break-Even Calculator

Calculate your break-even point and analyze profitability. Determine how many units you need to sell to cover your costs and start making profit.

Currency

Cost Information

MAD

Rent, salaries, insurance, and other costs that don't change with production

MAD

Materials, labor, and other costs that vary with each unit produced

MAD

The price at which you sell each unit to customers

Profit Analysis

Enter the number of units you plan to sell to see projected profit

Break-Even Point

Break-Even Units
500
units to sell to break even
Break-Even Revenue
25,000.00 MAD
revenue needed to break even

Contribution Margin

Per Unit20.00 MAD
Margin Ratio40.00%

Target Sales Analysis

Target Units1,000 units
Target Revenue50,000.00 MAD
Estimated Profit/Loss+10,000.00 MAD
✓ Success: Target sales exceed break-even point. You will make a profit at this volume.

Cost Breakdown

Fixed Costs10,000 MAD
Contribution Margin per Unit20.00 MAD
Variable Cost per Unit30.00 MAD

How to Use the Break-Even Calculator

1

Select your currency and enter your monthly fixed costs -- rent, salaries, insurance, and any expense that stays the same regardless of how many units you produce.

2

Enter the variable cost per unit, which includes materials, direct labor, and packaging -- anything that scales with each additional unit you make.

3

Set your selling price per unit. The calculator instantly shows your break-even point in units and revenue, plus your contribution margin ratio.

4

Optionally enter a target number of units to see a profit or loss projection and a visual cost breakdown chart for that sales volume.

Why Use Our Break-Even Calculator

Real-Time Results

Every field updates the analysis instantly. There is no submit button to press -- just type and watch your break-even point, contribution margin, and profit projection recalculate in real time.

Multi-Currency Support

Switch between MAD, EUR, USD, and GBP with one click. The calculator formats all outputs in your chosen currency so you can share results directly with stakeholders or investors.

Visual Cost Breakdown

A clear bar chart shows how fixed costs and variable costs stack up against your target revenue. Seeing the proportion visually helps you decide where to cut costs or raise prices.

Target Profit Analysis

Go beyond break-even by entering a target unit count. The tool tells you exactly how much profit or loss you would generate at that volume and whether you are above or below the break-even threshold.

Frequently Asked Questions

What is a break-even point?

The break-even point is the number of units you need to sell so that your total revenue exactly covers your total costs. Below that number you lose money; above it you earn profit. Knowing this figure helps you set realistic sales targets.

What counts as a fixed cost?

Fixed costs are expenses that remain the same no matter how many units you produce. Common examples include rent, salaried wages, insurance premiums, loan repayments, and software subscriptions. They are the costs you pay even if you sell zero units.

What counts as a variable cost?

Variable costs change in direct proportion to production volume. They include raw materials, packaging, shipping per unit, sales commissions, and hourly labor tied to production. The more you produce, the higher your total variable costs.

What is the contribution margin?

The contribution margin is the selling price minus the variable cost per unit. It represents the amount each sale contributes toward covering your fixed costs. A higher contribution margin means you reach break-even with fewer sales.

Can I use this for a service-based business?

Yes. Treat each billable hour or project as one "unit." Your fixed costs might be office rent and software tools, while variable costs could be subcontractor fees or per-project materials. The math works the same way for products and services.