Your break-even point is where total revenue equals total cost — the number of units you must sell before you start making a profit. It's fixed costs divided by the contribution margin (price minus variable cost per unit).
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Bookkeeping software
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Frequently asked questions
What is the break-even formula?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit).
What is contribution margin?
The money each unit contributes toward fixed costs after covering its own variable cost.