Break-Even Point Calculations

Without startup costs

How much will I charge per unit?
Selling price (per unit)
Minus variable costs (cost per unit)
Contribution margin (profit per unit not
considering fixed costs)

23.00
- 2.31
20.69

Units to sell each month to cover

monthly fixed costs

Fixed costs (monthly)

Divided by contribution margin
Break-even point (monthly)

16000.00
20.69
773.32 units

You must sell at least 773.32 units each month in

order to break even, including monthly fixed costs.

With startup costs

Over how many months will I spread
out my startup cost payments?
Startup costs
###
Number of months to repay the startup cost
6
Startup costs (monthly)
31666.67

Units to sell each month to cover

monthly fixed costs with startup costs
included
Fixed costs (monthly)
16000.00
Startup costs (monthly)
###
Fixed and startup costs (monthly)
47666.67
Divided by contribution margin
20.69
Break-even point including startup costs (monthly)
2303.85
You must sell at least 2303.85 units each month in
order to break even, including monthly fixed and
startup costs.

units

Startup costs (total)

Item
Acquisition cost

Total startup costs

Break-even point (including startup
costs)

Cost
190000

190000.00
2303.85 units

You must sell at least 2303.85 units each month in

order to break even, including monthly fixed and
startup costs.

Fixed costs (monthly)

Item
Rent
Salary (6000 + 4000)
Marketing

Total fixed costs

Break-even point (including startup
costs)

Cost
5000
10000
1000

16000.00
2303.85 units

You must sell at least 2303.85 units each month in

order to break even, including monthly fixed and
startup costs.

Variable costs (per unit)

Item
Water
Electricity
Chemicals
Misc

Cost
0.43
0.43
1.10
0.35

Total variable costs

2.31

Break-even point (including startup

costs)

2303.85 units

You must sell at least 2303.85 units each month in

order to break even, including monthly fixed and
startup costs.