Calculate the Break Even Point for Your Business
4/5/2023
Whether you’re a new small business owner or you’re looking to add a new product or service to your line of offerings, you’ll want to know your break-even point.
The calculator below will analyze the fixed costs, variable costs and estimated number of sales to help you set your price per unit and determine how many units you would need to sale to break even.
As a small business owner, understanding your break even point is critical to the financial success of your business. This knowledge will help you price your products appropriately, adjustment when necessary, and generate a profit.
At SouthState, we value the entrepreneurial spirit and are here to help your business succeed. If you need help managing your cash flow or accepting payment for your goods, our small business solutions are tailored to offer the security and convenience you need to keep your business running smoothly.
What is a Fixed Cost?
A fixed cost remains constant, regardless of the production fluctuations your business may experience. Throughout the course of running your business, these costs should remain (relatively) stable, and they do not change based on sales volume. Fixed costs are typically recurring expenses. Examples of fixed costs include rent or mortgage payments, employee salaries, utilities, and insurance.What is a Variable Cost?
Unlike fixed costs, there is a direct correlation between these costs and business production. This means when your production is higher, your variable costs will increase and vice versa. Examples of variable costs include materials, packaging, sales commissions (if applicable), and distribution costs.At SouthState, we value the entrepreneurial spirit and are here to help your business succeed. If you need help managing your cash flow or accepting payment for your goods, our small business solutions are tailored to offer the security and convenience you need to keep your business running smoothly.