Breakeven Point Calculator

An essential formula I learned in my undergraduate studies to determine the breakeven point of a business. The formula below is very useful for breakeven analysis. I coded a simple calculator in JavaScript that calculates the amount of units needed to be produced and sold to cover costs. The contribution margin, incremental profit per unit, is (Unit Price - Variable Unit Cost). The total fixed costs are divided by the contribution margin to reach the units required for break even.

Breakeven = Fixed Cost / (Unit Price - Variable Unit Cost)

Note: Units are always rounded up because fractional units can't be sold.

View my Javascript Code.

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