Break-Even Calculator

Each sale contributes price minus variable cost toward fixed costs; break-even is simply fixed costs divided by that contribution. A $45 product costing $20 to deliver contributes $25 — $12,000 of fixed costs needs 480 sales.

Break-even math prices new products, sizes marketing budgets (an ad spend is a fixed cost needing incremental sales), and stress-tests ideas: if break-even volume exceeds the plausible market, the model fails before it starts.