How the break-even calculator works
Break-even units = (fixed costs + debt service) ÷ (price − variable cost).
Margin of safety = (current units − break-even units) ÷ current units.
How to read the result
- If price is at or below variable cost, break-even is not reachable at any volume.
- Add debt service to see cash break-even for an acquired business.
Questions
Monthly or annual?
Either, as long as all inputs use the same period. The defaults are monthly.
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Formulas are simplified and tested in an open test suite. Spotted an error? Email hello@bootstrapper.com.