How To Calculate Break-Even Price

Introduction & Importance

Calculating the break-even price is crucial for businesses to understand their profitability. It’s the selling price at which total revenue equals total cost. Learn how to calculate it here.

How to Use This Calculator

1. Enter your fixed costs.
2. Enter your variable cost per unit.
3. Enter your selling price per unit.
4. Click ‘Calculate’.

Formula & Methodology

The break-even formula is: Break-Even Price = Fixed Costs / (1 – (Variable Cost / Selling Price))

Real-World Examples

Data & Statistics

Comparison of Break-Even Prices

Product	Fixed Costs	Variable Cost	Selling Price	Break-Even Price
Product A	$5000	$5	$15	$10.67

Expert Tips

• Regularly review and update your break-even price.
• Consider using a safety margin to account for unexpected costs.

Interactive FAQ

What if my variable cost changes?

Recalculate your break-even price with the new variable cost.

Learn more about break-even analysis from the SBA

Understand break-even analysis with this guide from Kent State University