The breakeven point is the number of units you need to sell in order to cover all your fixed and variable costs. At this point, your total revenue equals your total costs, and your profit is zero.

• Revenue per Unit → Amount you earn for each unit sold.

• Cost per Unit → Variable cost associated with producing each unit.

• Fixed Costs → Total overhead costs that do not change with production volume (e.g., rent, salaries, equipment).

  • If you’re calculating monthly breakeven, enter monthly fixed costs (e.g., $3,000/month).

  • If you’re calculating yearly breakeven, enter yearly fixed costs (e.g., $36,000/year).

  • The result (breakeven units) will then correspond to that same time period.