Sales Volume Breakeven Analysis

The breakeven analysis calculator is designed to demonstrate how many units of your product must be sold to make a profit. Hit "View Report" to see a detailed look at the profit generated at each sales volume level.

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Definitions

Variable unit cost: Cost associated with producing an additional unit.
Fixed cost: The sum of all costs required to produce any product. This amount does not change as production increases or decreases.
Expected unit sales: The number of units that are expected to be sold.
Price: Price you will be able to receive per unit.
Total variable costs: The product of units produced and variable unit cost (example 10 units at $5 variable cost produces a total variable cost of $50).
Total costs: Sum of fixed costs and variable costs.
Total revenue: Product of price and expected sale unit sales (example 10 units at $10 equals $100 total revenue).
Profit: Total revenue minus total costs.
Breakeven: Number of units required to sell to make a profit of zero.

Using the Break Even Analysis Calculator to Determine Your Profits

If you are involved in a business of selling products, you must obviously be aware of how many units you need to sell to begin generating profits. But do you really know that important breakeven point? Forget drawing up detailed lists of your costs and then spending hours on calculations. Now all you need to do is enter the required information into this break even analysis calculator and let it work for you!

The break even analysis calculator tells you exactly how many units you must sell to make a profit. In addition, you can also click the ‘View Report’ button to get a detailed analysis of the profits you make at each level of sales.

Here are the definitions of a few important terms that you will need to be familiar with to use the break even analysis calculator.

Variable Unit Cost
This term refers to the additional cost needed to produce an extra unit.

Expected Unit Sales
This term implies the number of units that you expect to sell.

Price
The simplest term around here! This simply refers to the actual price you will get for a single unit.

Fixed Cost
This is the sum of all costs involved in producing a product. This particular amount will remain steady even if the production level fluctuates.

Total Costs
The break even analysis calculator determines this factor by adding up the variable costs and fixed costs.

Total Revenue
This simply means the revenue collected from sale of units. For instance if 10 units priced at $10 each are sold, it creates a total revenue of $100.

Profit
All right, there is actually no need to explain this one. This is just what we learned in school – the total sales amount minus total costs.

Breakeven
This term refers to the number of units that you need to sell to avoid loss and make a profit of zero. This simply means that every unit you sell after the breakeven number counts as profit.