The break-even point is the revenue or unit volume where your total income equals total costs, no profit, no loss. Calculate it by dividing your total fixed costs by your gross profit margin (for revenue break-even) or by your contribution margin per unit (for unit break-even). Every small business owner should know this number before making any pricing, hiring, or expansion decision.
Break-Even Calculator for Manufacturing
Pre-filled with real manufacturing industry benchmarks
Manufacturing businesses carry heavy fixed costs - equipment leases, facility overhead, and base labor - that must be covered before a single unit turns a profit. Your break-even point is the production volume where total revenue equals total costs. Most manufacturers target 60 to 75% capacity utilization to break even, leaving room for profit at higher output. This calculator is pre-filled with typical manufacturing benchmarks including 45% materials cost and $20,000/month in fixed overhead.
Break-Even Calculator
Pre-filled with manufacturing industry defaults. Edit any field to use your real numbers.
Break-Even Units
53
Break-Even Revenue
$88,351
Contribution Margin
55.0%
Manufacturing industry average margin: 55.0% gross margin with 45.0% COGS.