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For any business, the 'Break-Even Point' is a critical milestone. It is the moment when your total sales revenue exactly covers all of your business expenses—both fixed and variable. Before this point, you are operating at a loss; after this point, every additional sale contributes to your net profit. Understanding this number is essential for setting prices, creating sales targets, and evaluating the viability of a new product or startup. Our Break-Even Calculator provides this vital metric in both units and total revenue, giving you a clear target for your business success.
Hoe het werkt
The tool first determines the contribution margin (Price minus Variable Cost). It then divides the total Fixed Costs by this margin to find the number of units required to break even. Finally, it multiplies those units by the price to show the required total revenue.
Berekeningsformule
Units = Fixed Costs / (Price - Variable Cost)
Calculation Examples
1. **Small Business**: Fixed costs of $2,000/month, selling a product for $50 that costs $10 to make. You must sell **50 units** per month to break even.
2. **Digital Service**: High fixed costs ($10,000) but low variable costs ($2). Selling for $20. You need **556 customers** to break even.
Why use this tool in your daily life?
Run your business by the numbers. This service provides the core 'success target' for entrepreneurs, helping you decide if a business idea is viable or if you need to adjust your pricing and cost structure.
Tip
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