This free calculator calculates your breakeven point and profitability. Switch between the tabs to do calculate your breakeven point or expected profit/loss. Use the "Break-even Analysis" tab to calculate your breakeven point and the "Profitability Analysis" tab to calculate profit or loss.
Instructions:
To calculate your breakeven point for a product:
- "Unit Price" - Enter the unit price of the product you're selling. For example, if you sell DVDs, the price may be $10.00 per DVD.
- "Unit Variable Cost" - Enter the variable cost for the product. This is the expense incurred to acquire a single product. For example, it might cost you $2.00 to acquire or manufacture a single DVD. Examples of variable costs include packaging, raw materials, packaging, and labor directly used in the manufacturing process.
- "Fixed Costs" - Enter the costs that don't change in the short run with the amount of product sold. Rent, insurance and property taxes are all examples of fixed costs.
To calculate your profit or loss for a product:
- Select the "Profitability Analysis Tab" and follow the instructions above to enter "Unit Price", "Unit Variable Cost" and "Fixed Costs".
- "Expected Units Sold" - Enter how many units of product you expect to sell for a given time period. For example, you may expect to sell 8000 DVDs this quarter.
Please contact us if you have questions about using this software or if you have suggestions about how we can improve it.