#break-even-calculator-wrapper {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 12px rgba(0,0,0,0.05);
padding: 20px;
}
.be-row {
display: flex;
flex-wrap: wrap;
margin: 0 -10px;
}
.be-col {
flex: 1;
padding: 0 10px;
min-width: 280px;
}
.be-group {
margin-bottom: 20px;
}
.be-group label {
display: block;
font-weight: 600;
margin-bottom: 8px;
color: #333;
}
.be-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.be-group .input-wrapper {
position: relative;
}
.be-group .currency-symbol {
position: absolute;
left: 12px;
top: 50%;
transform: translateY(-50%);
color: #666;
}
.be-group input.has-currency {
padding-left: 25px;
}
.be-btn {
background-color: #0073aa;
color: white;
border: none;
padding: 15px 30px;
font-size: 18px;
border-radius: 4px;
cursor: pointer;
width: 100%;
font-weight: bold;
transition: background 0.3s;
}
.be-btn:hover {
background-color: #005177;
}
.be-results {
background-color: #f9f9f9;
border-top: 2px solid #0073aa;
padding: 20px;
margin-top: 20px;
border-radius: 0 0 4px 4px;
display: none;
}
.be-result-item {
display: flex;
justify-content: space-between;
align-items: center;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.be-result-item:last-child {
border-bottom: none;
}
.be-result-label {
color: #555;
font-size: 16px;
}
.be-result-value {
font-weight: 800;
font-size: 20px;
color: #2c3e50;
}
.be-error {
color: #d32f2f;
background: #ffebee;
padding: 10px;
border-radius: 4px;
margin-top: 10px;
display: none;
text-align: center;
}
.be-chart-bar {
height: 24px;
background: #e0e0e0;
border-radius: 12px;
margin-top: 5px;
overflow: hidden;
position: relative;
}
.be-chart-fill {
height: 100%;
background: #27ae60;
width: 0%;
transition: width 0.5s ease;
}
/* Article Styles */
.be-content {
margin-top: 40px;
line-height: 1.6;
color: #333;
}
.be-content h2 {
font-size: 24px;
color: #0073aa;
margin-top: 30px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.be-content h3 {
font-size: 20px;
margin-top: 20px;
}
.be-content ul {
padding-left: 20px;
}
.be-content li {
margin-bottom: 10px;
}
function calculateBreakEven() {
// Get input values using var
var fixedCostsInput = document.getElementById('be_fixed_costs');
var priceUnitInput = document.getElementById('be_price_unit');
var variableUnitInput = document.getElementById('be_variable_unit');
var errorDiv = document.getElementById('be_error_msg');
var resultsDiv = document.getElementById('be_results_area');
// Parse float values
var fixedCosts = parseFloat(fixedCostsInput.value);
var pricePerUnit = parseFloat(priceUnitInput.value);
var variableCostPerUnit = parseFloat(variableUnitInput.value);
// Clear previous errors
errorDiv.style.display = 'none';
resultsDiv.style.display = 'none';
// Validation
if (isNaN(fixedCosts) || isNaN(pricePerUnit) || isNaN(variableCostPerUnit)) {
errorDiv.innerHTML = "Please fill in all fields with valid numbers.";
errorDiv.style.display = 'block';
return;
}
if (pricePerUnit = pricePerUnit) {
errorDiv.innerHTML = "Variable cost cannot be higher than or equal to sales price (You are losing money on every sale).";
errorDiv.style.display = 'block';
return;
}
// Calculation Logic
var contributionMargin = pricePerUnit – variableCostPerUnit;
var contributionMarginRatio = (contributionMargin / pricePerUnit) * 100;
// Break-even units = Fixed Costs / Contribution Margin
var breakEvenUnits = fixedCosts / contributionMargin;
// Break-even Revenue = Break-even units * Price
var breakEvenRevenue = breakEvenUnits * pricePerUnit;
// Rounding
var displayUnits = Math.ceil(breakEvenUnits); // Can't sell partial units usually
var displayRevenue = breakEvenRevenue.toFixed(2);
var displayContribution = contributionMargin.toFixed(2);
var displayRatio = contributionMarginRatio.toFixed(1);
// Update DOM
document.getElementById('res_units').innerText = displayUnits.toLocaleString();
document.getElementById('res_revenue').innerText = "$" + parseFloat(displayRevenue).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_contribution').innerText = "$" + displayContribution;
document.getElementById('res_ratio').innerText = displayRatio + "%";
document.getElementById('txt_units_summary').innerText = displayUnits.toLocaleString();
// Show results
resultsDiv.style.display = 'block';
}
Business Break-Even Point Calculator
$
Rent, insurance, salaries, software subscriptions.
$
The price you charge customers for one unit.
$
Materials, labor, shipping cost per item.
Calculation Results
Break-Even Point (Units)
0
Break-Even Revenue
$0.00
Contribution Margin
$0.00
Contribution Margin Ratio
0%
You need to sell 0 units to cover your costs.
What is the Break-Even Point?
The Break-Even Point (BEP) is a crucial financial metric for business owners and entrepreneurs. It represents the point where your total revenue equals your total costs (both fixed and variable). At this point, your business is neither making a profit nor a loss.
Knowing your break-even point is essential for pricing products effectively, determining sales targets, and analyzing the viability of a new business venture. Until you surpass this number in sales, your business is operating at a loss.
How to Calculate Break-Even Point
The formula to calculate the break-even point in units is relatively straightforward:
Break-Even Units = Total Fixed Costs / (Price per Unit – Variable Cost per Unit)
Key Components:
- Fixed Costs: Expenses that remain constant regardless of how much you sell (e.g., rent, insurance, salaries, software subscriptions).
- Variable Costs: Costs that fluctuate directly with sales volume (e.g., raw materials, packaging, shipping, sales commissions).
- Contribution Margin: The amount calculated by subtracting variable costs from the sales price. This amount contributes to covering fixed costs.
Example Calculation
Imagine you run a coffee shop selling specialized coffee bags.
- Fixed Costs: $2,000 per month (Rent & Utilities)
- Sales Price: $15.00 per bag
- Variable Cost: $5.00 per bag (Beans & Packaging)
First, calculate the contribution margin: $15.00 – $5.00 = $10.00.
Next, divide fixed costs by the contribution margin: $2,000 / $10.00 = 200 units.
You must sell 200 bags of coffee to break even. Any sale after the 200th bag generates pure profit.
How to Lower Your Break-Even Point
If your calculation shows a break-even point that seems unachievable, consider these strategies:
- Raise Your Prices: Increasing the price per unit improves your contribution margin, meaning you need to sell fewer units to cover fixed costs.
- Reduce Variable Costs: Negotiate better rates with suppliers or find cheaper packaging alternatives to widen the margin.
- Cut Fixed Costs: Reduce overhead by moving to a smaller office, reducing subscriptions, or optimizing utility usage.