Mcmillan Calculator

by

Reviewed by David Chen, CFA

Financial Analyst & Strategic Business Planner | Over 15 years of industry experience

Optimize your business strategy with our professional Deadlock Build Calculator. Whether you are launching a new product or analyzing project feasibility, this tool helps you find the exact “Deadlock” point—the threshold where total costs and total revenue are perfectly balanced.

Deadlock Build Calculator

Calculation Result:
$0.00

Deadlock Build Calculator Formula:

Fixed Costs (F) + (Variable Cost (V) × Q) = Price (P) × Q

Standard Break-Even Quantity Formula:
Q = F / (P – V)

Source: Investopedia – Break-Even Analysis Guide

Variables:

  • Fixed Costs (F): Total expenses that do not change regardless of production volume (e.g., rent, salaries).
  • Price per Unit (P): The amount of money received for each unit sold.
  • Variable Cost (V): Costs that vary directly with the level of production (e.g., raw materials).
  • Quantity (Q): The number of units produced or sold to reach the deadlock point.

Related Calculators:

What is Deadlock Build Calculator?

A Deadlock Build Calculator is a specialized financial tool designed to determine the exact moment a business “build” or project transitions from a loss-making phase to a profitable one. In business terms, this is widely known as the Break-Even Point (BEP).

By identifying the “Deadlock” point, managers can set realistic sales targets, determine optimal pricing strategies, and understand the safety margin of their operations. It eliminates guesswork and provides a mathematical foundation for scaling.

How to Calculate Deadlock Build Calculator (Example):

  1. Identify your total Fixed Costs ($10,000).
  2. Determine your Sale Price per item ($100).
  3. Calculate Variable Costs per item ($60).
  4. Subtract Variable Cost from Price to find Contribution Margin ($100 – $60 = $40).
  5. Divide Fixed Costs by Contribution Margin ($10,000 / $40 = 250 units).

Frequently Asked Questions (FAQ):

What happens if Price is lower than Variable Cost?
If P < V, the business will lose money on every unit sold, making it impossible to reach a deadlock point regardless of volume.

Can I use this for service-based builds?
Yes. Simply use the hourly rate as Price and the labor/software cost as Variable Cost.

Is Deadlock the same as Profit?
No, Deadlock represents 0 profit. Anything sold beyond this point contributes to net profit.

How often should I recalculate?
Recalculate whenever your supply chain costs (Variable) or fixed overheads (Rent/Insurance) change.

V}

Leave a Comment