What is the break-even point?
It is the number of units you need to sell in a period so revenue exactly covers your fixed and variable costs, with no profit and no loss. Selling below that number means a loss; above it, profit begins.
The break-even point is the number of units you need to sell to cover your fixed costs, with no profit and no loss: it is calculated by dividing fixed costs by the difference between the unit sale price and the unit variable cost; that difference is the contribution margin per unit. Example: with fixed costs of 5,000,000, a sale price of 50,000 and a variable cost of 30,000 per unit, you need to sell 250 units to reach break-even, with revenue of 12,500,000 and a contribution margin of 40%.
It is the number of units you need to sell in a period so revenue exactly covers your fixed and variable costs, with no profit and no loss. Selling below that number means a loss; above it, profit begins.
You cannot sell a fraction of a unit, so the exact number (for example 76.92) is rounded up to the next whole unit (77) to make sure revenue fully covers the fixed costs.
Costs for the period that do not change with the quantity sold, as opposed to the unit variable cost, which does grow with every sale. Examples: rent, administrative payroll, utilities.
Enter both fields the same way, with or without tax, so the result stays consistent; the tool does not add or remove tax on its own.
Informational tool; it does not replace accounting, tax or labor advice.
Renaska Reports shows you the real margin on every product, using the exact cost you had at the moment of each sale; it never changes just because you later adjust a price or an input goes up.