Find out how many units you need to sell each month before you stop losing money, and what that is in revenue. Enter your fixed costs, your selling price and your variable cost per unit; the result and the chart update as you type. Everything runs in your browser. Nothing you type or upload is sent to We.Inc or anyone else.
Before you set prices, sign a lease or hire someone, it helps to know how many sales the new cost needs. Break-even turns a vague worry into one number you can compare with what you sell today.
It also shows which change helps most. A small price rise usually moves break-even further than the same cut in costs, because the whole rise goes straight into the contribution per unit.
The model assumes one price, one variable cost and fixed costs that do not move. Real businesses have discounts, several products and costs that step up (a second van, a bigger unit). Use the result as a planning guide, and recalculate when your numbers change.
Divide your fixed costs by the contribution per unit, which is the selling price minus the variable cost per unit. For example, with $3,000 of fixed costs, a $50 price and $20 of variable cost, each sale contributes $30, so you need 100 sales to break even.
Multiply the break-even units by the selling price. You can also divide fixed costs by the contribution margin ratio (contribution per unit divided by price). In the example above, 100 units x $50 = $5,000 a month.
The share of each sale left over to pay fixed costs and then profit. In the example, $30 of every $50 sale, or 60%.
A cost that stays the same whatever you sell in the month: rent, salaries, insurance, loan repayments, software and your website. Costs that rise with each sale are variable.
Yes. There is no signup and nothing is uploaded. It is a planning estimate: real costs change as volume grows.
Related: Profit Margin Calculator, Estimate Generator, USP Generator, Website Cost Calculator, Pricing.
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