Break-Even Calculator

💰 How This Calculator Works

Calculates the sales volume needed to cover all fixed and variable costs — the point where total revenue equals total costs.

🔢 Worked Examples

• Fixed costs $10k/month, price $50, variable cost $30 → break-even 500 units
• $500k fixed, 40% contribution margin → break-even revenue $1.25M

📋 Common Use Cases

Savings calculators project how regular contributions and compound interest build wealth over time. Starting early is the single most powerful lever — thanks to compound growth, money saved at 25 can be worth 8× more at retirement than money saved at 45.

• Setting a monthly savings target to reach a goal by a deadline
• Comparing different savings account rates
• Planning a down payment for a home or car
• Modelling retirement savings by age

💡 Did You Know?

The "latte factor" coined by David Bach: saving $5/day from age 25 to 65 at 8% annual return grows to over $520,000. The math is unforgiving in both directions — for saving and for spending.

⚠️ Common Mistake

Using accounting profit as the denominator instead of contribution margin (price minus variable costs). Fixed costs are irrelevant for the per-unit margin calculation.