Break-Even Calculator Pro

Monthly Break-Even Model — Insulated Bottle

Inputs supplied (illustrative): price $80/unit; variable cost $32/unit; fixed operating costs $12,000/month; target operating profit $6,000/month; forecast volume 300 units/month. Currency USD. Assumes one product, constant price and unit variable cost, and no capacity step at modeled volumes. Confirm all inputs against the accounting period and actual cost records.

Unit economics

• Contribution per unit = price − variable cost = $80 − $32 = $48/unit
• Contribution margin = $48 ÷ $80 = 60%

Break-even

• Break-even units = monthly fixed costs ÷ contribution per unit = $12,000 ÷ $48 = 250 units/month
• Break-even revenue = 250 × $80 = $20,000/month
  At 250 units, contribution totals $12,000 and covers the stated fixed costs, leaving $0 operating profit under these assumptions.

Target profit

• Units for $6,000 operating profit = (fixed costs + target profit) ÷ contribution = ($12,000 + $6,000) ÷ $48 =

375 units/month

• Revenue at target = 375 × $80 = $30,000/month
  This is an operating model, not a cash or after-tax target.

Margin of safety at forecast volume

• Forecast contribution = 300 × $48 = $14,400; modeled operating profit = $14,400 − $12,000 = $2,400/month
• Break-even cushion = 300 − 250 = 50 units, or 50 ÷ 300 = 16.7% of forecast volume

Interpretation and checks

The forecast is 50 units above modeled break-even but below the target-profit volume by 75 units. Before relying on this result, confirm whether shipping, payment fees, returns, discounts, packaging, fulfillment, sales commissions, taxes, owner compensation, depreciation, financing, and inventory spoilage are included and correctly classified. If a cost changes with volume or a new staffing/storage step begins, recalculate.

Decision use: Build low/base/high cases for price, variable cost, and fixed costs; test contribution by channel and returns; define a minimum cash reserve separately. No sales, profit, runway, or viability outcome is guaranteed. Ask an accountant or qualified finance professional to review consequential decisions.