This break-even point calculator helps Australian SMEs determine the sales volume needed to cover costs and achieve profitability.
Enter fixed costs, variable costs per unit, and selling price in AUD to get instant break-even units and revenue.
Use it for pricing strategies or financial planning.
Determine sales volume needed to cover costs
This is an estimate; include all relevant costs for accuracy. Explore Scale Suite's resources for financial insights.
Purpose:
Designed for Australian small and medium enterprises (SMEs), business owners, and financial managers, this tool calculates the break-even point using the formula: fixed costs divided by (selling price per unit minus variable cost per unit). Input your figures in AUD to assess viability. Ideal for pricing decisions or business planning.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access during budgeting or product launches. Update inputs regularly to reflect cost changes!
Understanding Break-Even Point Basics:
The break-even point shows the sales volume (units or revenue) needed to cover all costs. Fixed costs (e.g., rent, salaries) remain constant; variable costs (e.g., materials, shipping) vary per unit sold. "Per unit" refers to a single item or service (e.g., one t-shirt or consulting hour).
For multiple products, use average costs and prices or calculate separately. A lower break-even point indicates less risk. Use alongside profit margin analysis for strategic insights.
Key Components:
1. Period: Monthly or annual; fixed costs scaled (input as monthly, multiplied by 12 for annual).
2. Fixed Costs: Total costs unchanged by sales volume (e.g., rent, salaries) in AUD for the monthly period.
3. Variable Cost per Unit: Cost per single item/service sold (e.g., materials, shipping).
4. Selling Price per Unit: Price per single item/service sold (excluding GST).
Benefits for SMEs:
This calculator supports pricing optimisation, cost management, and financial forecasting. Explore Scale Suite’s financial services for comprehensive support.
Additional Resources:
Explore Scale Suite’s resources for additional insights or read our breakeven point article.
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