Business calculator
See how selling price, costs, and sales volume affect your operating profit. Start with a break-even estimate, then adjust expected sales to calculate revenue and margin.
Edit any line below. Results update as you type. Use the same currency for all monetary amounts.
| @1 | fixedCosts = 3000 | |
| @2 | unitPrice = 50 | |
| @3 | unitCost = 20 | |
| @4 | unitsSold = 150 | |
| @5 | contribution = unitPrice - unitCost | |
| @6 | breakEvenUnits = ceil(fixedCosts / contribution) | |
| @7 | revenue = unitPrice * unitsSold | |
| @8 | totalCosts = fixedCosts + unitCost * unitsSold | |
| @9 | profit = revenue - totalCosts | |
| @10 | marginPercent = profit / revenue * 100 |
How to calculate break-even and profit
Subtract variable cost per unit from the selling price to find the contribution toward fixed costs. Divide fixed costs by that contribution and round up to find the whole units needed to break even. Profit is revenue minus total costs. Profit margin is profit divided by revenue, multiplied by 100.
Assumptions and limits
Use a selling price greater than the variable cost per unit and positive sales volume. Otherwise there is no finite break-even point or the margin is undefined. This simplified model assumes a single product, constant unit costs, and fixed costs for one consistent period. Profit is before tax.
Is profit margin the same as markup?
No. Margin divides profit by revenue. Markup divides the difference between price and cost by cost. The marginPercent line reports a percentage number, so a result of 20 means 20%.
Related calculators and examples
New to editable calculations? Learn how to use variables and formulas.