Calculate Selling Price Per Unit in Break-Even Analysis
Break-even analysis is a crucial tool for businesses to understand their profitability. Calculating the selling price per unit is a key part of this analysis. Our calculator helps you determine the optimal selling price to cover both fixed and variable costs.
- Enter your fixed costs (FC).
- Enter your variable costs per unit (VC).
- Enter your desired selling price per unit (SP).
- Click ‘Calculate’.
The break-even point (BEP) in units is calculated as: BEP = FC / (SP – VC). The selling price per unit at the break-even point is: SP = FC / BEP + VC.
| Company | Fixed Costs | Variable Costs per Unit |
|---|---|---|
| ABC Corp | $10,000 | $5 |
| XYZ Inc | $15,000 | $3 |
- Consider market demand and competition when setting your selling price.
- Regularly review and update your break-even analysis as costs change.
- Use this tool to inform your pricing strategy and improve profitability.
What is the break-even point?
The break-even point is the point at which total revenue equals total cost, resulting in neither profit nor loss.
For more information, see the SBA’s guide to break-even analysis.