Breakeven Calculator
Adicot, Inc.'s Breakeven Calculator is perfect for quickly and accurately determining the breakeven point of a project. It allows you to input your sales, variable costs, and fixed costs per period in order to calculate the breakeven point (number of units) and the profit per period for the remaining units. With this calculator, you'll be able to make more informed decisions on your projects.
Instructions:
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Enter your project name (optional)
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Enter the Sales per unit information:
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Sales price per unit, and
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Sales volume per period
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Enter the applicable per unit variable costs:
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Commission
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Direct material
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Shipping
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Supplies
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And any other variable costs
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Enter the fixed costs per period:
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Administrative Costs
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Insurance
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Property tax
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Rent
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And any other fixed costs
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The Breakeven Point as number of units, and the Profit per period for the remaining units appear in the results with a table of costs and profit from 0 to 100 % of the sales volume, and update as you type.
Methodology
- Unit contribution margin = sales price per unit − variable costs per unit
- Gross margin = total sales − total variable costs
- Net profit = gross margin − total fixed costs per period
- Break-even point = total fixed costs ÷ unit contribution margin, in units per period
Example: a product sells for $25 with $10 of variable costs per unit, so each unit contributes $15. With $12,550 of fixed costs per period, the break-even point is 12,550 ÷ 15 = 836.7 units. At 2,000 units the net profit is 2,000 × $15 − $12,550 = $17,450.