Article · Guide

Break-Even Analysis

Corporate Finance Institute · corporatefinanceinstitute.com Free Beginner

A worked guide to the break-even formula in units and in sales, with the contribution margin behind it.

  • Break-even units = fixed costs / (price minus variable cost per unit).
  • Break-even sales = fixed costs / contribution margin ratio.
  • Rerun it whenever price or costs change.
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The question it answers

  1. How do I calculate my break-even point?

Read with it

  1. This is the cleanest plain-language separation of the two margins we found, and it walks through both formulas with actual... Shopify Article · About 8 minute read Contribution Margin vs. Gross Margin: What's the Difference? Shopify
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  3. The SBA's planning guide, with a break-even analysis calculator and sections on market research, competitive analysis and... sba.gov Tool · Guide and calculator Plan your business: startup costs and break-even calculator U.S. Small Business Administration
  4. A CPA's step-by-step tutorial on fixed and variable expenses, contribution margin, and the break-even point in units and in sales. accountingcoach.com Article · Tutorial Break-even Point (explanation) AccountingCoach
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