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Break Even Analysis

Find the break-even point where revenue covers total costs. Enter fixed costs, variable costs and unit price to see how many sales you need to profit.

Last reviewed 15 August 2026

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When to use this calculator

  • Before pricing a job, setting margin targets or reviewing hiring costs.
  • When you want to test sensitivity around volume, tax, markup or overheads.
  • When you need a practical estimate before committing to a budget or proposal.
  • When you are modelling break-even volume as costs or prices change.

A realistic South Africa planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic South Africa planning example
InputValue
Fixed Costs (R)R500
Selling Price Per Unit (R)R0.30
Variable Cost Per Unit (R)R500
Expected Units Sold1000

After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.

How to read your results

Result

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Method & assumptionsAuthoritative sources

This calculator uses the standard contribution margin method to find your break-even point. Enter your total monthly or annual fixed costs, the selling price per unit, and the variable cost per unit. The contribution margin — selling price minus variable cost — is then divided into fixed costs to produce the break-even quantity. Revenue break-even is derived by multiplying that quantity by your selling price.

The calculator assumes a single product or a consistent product mix and that costs behave in a linear, predictable way. It does not factor in stepped fixed costs (for example, a second production shift that kicks in above a certain volume), seasonal demand swings, or credit terms that delay cash receipts. Use the output as a planning guide rather than a precise operational target.

Common mistakes

  • !Using an assumption that is not supported by a current local quote, bill, statement or official source.
  • !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
  • !Mixing monthly and annual inputs without converting them consistently.
  • !Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

  • Run a second scenario with a cautious assumption so you can see the downside clearly.
  • Compare the result with the related calculators below before making a decision.
  • Check current local rules, eligibility and provider terms before applying or committing money.
  • Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.

Frequently asked

Break-even analysis determines the sales volume at which total revenue equals total costs, meaning the business makes neither a profit nor a loss. It is essential for pricing decisions and business planning.

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