Find Your Break-Even Price and Profit
Results
Visualization
How It Works
Break-even units equal fixed costs divided by the contribution per unit (price minus unit cost). Profit at any price is contribution per unit times volume minus fixed costs. The profit curve sweeps price from just above cost up to three times cost, showing where profit peaks before volume assumptions would pull it down. This is a static view; real volume falls as price rises.
What Should You Do?
Do not chase the highest price. Profit peaks where price and volume meet your market. Use break-even units as a floor: if expected volume is near break-even, a small sales miss loses money. Revisit whenever costs or fixed overhead change.
Frequently Asked Questions
What is contribution margin?
Price minus unit cost, shown as a dollar amount and as a percent of price. It is the money each sale contributes toward covering fixed costs and profit.
Why does the curve flatten?
The simulator holds volume fixed. In reality higher prices cut volume, so real profit would turn down sooner than the flat curve suggests.
What if price is below cost?
Then break-even is impossible at that price and the tool shows 0 break-even units with a loss. You would lose money on every sale.
How do I use break-even day to day?
If your expected sales are close to break-even units, a small dip puts you in the red. Keep a cushion or raise price.