Break-Even Calculator

Find out exactly how many units you need to sell each month to cover all your costs and start making profit.

Cost & Pricing Inputs

Fixed Costs (monthly)

₦

Variable Cost per Unit

₦

Selling Price per Unit

₦

Break-Even Point

167 units

Break-Even Revenue

₦833,333

Contribution Margin / Unit

₦3,000

Contribution Margin %

60.0%

Fixed Costs

₦500,000

Extended

Break-Even Chart & Sensitivity

Visualize where revenue crosses total cost, and see how price changes affect your break-even

Revenue vs total costs — they cross at the break-even point

Revenue Total Cost Fixed Cost

Professional

Multi-Product Break-Even & Profit Planning

Multi-product contribution analysis, target profit units, and seasonal adjustment

Total Fixed Costs (monthly)

₦

Price (₦)

Var Cost (₦)

Sales Mix %

Contribution: ₦3,000Margin: 60.0%

Price (₦)

Var Cost (₦)

Sales Mix %

Contribution: ₦5,000Margin: 62.5%

Multi-Product Break-Even

Weighted Contribution/unit

₦3,800

Break-Even Units (total)

132

Break-Even Revenue

₦815,789

How to Use This Calculator

Enter your monthly fixed costs (rent, salaries, utilities — costs that don't change with sales volume), variable cost per unit (raw materials, packaging, direct labour per item), and your selling price per unit. The calculator instantly shows you how many units you must sell each month just to cover all your costs.

What is Break-Even?

The break-even point is where your total revenue exactly equals your total costs — you make neither a profit nor a loss. Every unit sold above break-even contributes directly to profit.

The Formula

Contribution Margin = Selling Price − Variable Cost per Unit Break-Even Units = Fixed Costs ÷ Contribution Margin Break-Even Revenue = Break-Even Units × Selling Price Contribution Margin % = (Contribution Margin ÷ Selling Price) × 100

Example

Small Lagos Fashion Business

Monthly Fixed Costs (rent, salaries, utilities)₦500,000

Variable Cost per Outfit (fabric, buttons, thread)₦2,000

Selling Price per Outfit₦5,000

Contribution Margin per Unit₦3,000

Break-Even Units167 outfits/month

Break-Even Revenue₦835,000/month

To make a profit, the business must sell more than 167 outfits per month. At 200 outfits, monthly profit = (200 − 167) × ₦3,000 = ₦99,000.

FAQ

Fixed costs stay the same regardless of how much you produce or sell — shop rent, staff salaries, insurance, generator fuel (base level), internet subscriptions. Variable costs change directly with production volume — raw materials, packaging, sales commissions, delivery costs per order. Some costs are semi-variable (electricity, part-time labour) — split these between the two categories.

Three main strategies: (1) Increase your selling price — even a 10% price increase has a large impact on contribution margin. (2) Reduce variable costs — negotiate better material prices, reduce waste, improve process efficiency. (3) Cut fixed costs — share office space, outsource non-core functions, renegotiate leases. The most powerful approach is usually increasing price, as Nigerian consumers often associate higher prices with better quality.

Yes. For a service business, the "unit" might be a client session, a project, or a consulting day. Variable cost per unit includes any direct costs of delivering that service (freelancer fees, materials used). For example, a Lagos consulting firm with ₦800,000 fixed costs and ₦20,000 direct cost per client day, charging ₦80,000 per day, breaks even at 13.3 client days per month.