The core objective of every business is to start making profit. Predictably, no business starts making profit the moment it launches in the market. Till the point a product starts making profit, a business has to bear all the expenses and may even go on loss to convince their target audience.
Break-Even Analysis is a mathematical computation that helps a business identify the point from which it becomes profitable (break-even point). It indicates the point where total revenue (total sales) equal total cost.
This online calculator allows you to accomplish the following:
1. Determine the quantity it needs to produce or sell in order to break-even
2. Determine the selling price it needs to charge for a specific quantity you sell in order to break-even.
Type of tool: Calculator (values calculator)
Entrepreneurial stage: I’m intending to start/I’m just starting/I’m a new business owner
Time needed: 10 min
Frequency of completion: Occasionally
Business sector: Service, Manufacturing, Trade