What if price equals variable cost?
Contribution margin becomes zero, so no finite number of units will cover fixed costs. Raise price or reduce cost.
Step-by-step walkthrough
Break-Even Point Guide
Use this companion guide beside the interactive calculator to make sure you understand the “why” behind every click. Each section includes the classroom explanation, student-friendly language, and quick practice prompts.
Before you start
Collect the data points listed below and double-check their units. Keeping an organized “givens” list is one of the fastest ways to reduce math errors and impress exam graders.
- break-even
- fixed costs
- contribution
Detailed procedure
Step 1
Enter unit price and variable cost per unit.
Step 2
Add fixed costs and, if desired, a profit target.
Step 3
Review break-even units, revenue, and the contribution per unit.
Teaching & troubleshooting tips
Can I enter multiple products?
Use weighted averages for price and variable cost or run the calculation per product line.