Break Even Calculator | Mehmi Financial Group

Break Even Calculator

Calculate how many units you need to sell or revenue you need to generate to cover all your costs.

Break Even Point (Units)

Calculate how many units you need to sell to cover your fixed costs. This is essential for pricing decisions and sales goal setting.

Break Even Point
0 units
to cover all fixed costs

Break Even Analysis

Selling Price$150
Variable Cost$75
Contribution Margin$75
Break Even Units334
Units for Target Profit467

Key Metrics

50%
Contrib. Margin %
$50K
BE Revenue
11
Units/Day
84
Units/Week

Break Even Units = Fixed Costs ÷ Contribution Margin

Contribution Margin = Selling Price - Variable Cost

The contribution margin is what each unit contributes toward covering fixed costs and generating profit.

Lower Break Even: Increase prices, reduce variable costs, or lower fixed costs.

Safety Margin: Aim to sell 20-30% above break even for a healthy buffer.

Product Mix: Focus on products with higher contribution margins.

*All amounts in Canadian dollars. Estimates only—this is not a financing offer or approval. Taxes (GST/PST/HST) NOT included.

Use this break-even calculator to estimate the sales volume or monthly revenue you need to cover fixed costs and variable costs. It helps Canadian business owners sanity-check pricing, margins, and sales targets before taking on new overhead, hiring, or financing a growth purchase.

What you can calculate

  • Break-even units based on selling price, variable cost per unit, and monthly fixed costs
  • Break-even revenue using gross margin percentage for mixed products or services
  • What-if profit scenarios to see how price, costs, and volume impact profit

FAQs

Everything you need to know about how this calculator works, what the results mean, and what is included. If you need a quote or help reviewing your numbers, feel free to contact our credit analysts.
Get in touch
What is a break-even point?
Break-even is the point where total revenue equals total costs. At break-even, profit is $0.
What counts as fixed costs?
Costs that do not change much with sales volume, like rent, base payroll, insurance, software, and loan payments.
What counts as variable costs?
Costs that rise as you sell more, like materials, merchant fees, shipping, commissions, and direct labour tied to production.
What is contribution margin?
Selling price per unit minus variable cost per unit. It is what each sale contributes toward fixed costs and profit.
Should I calculate break even monthly or yearly?
Use monthly for budgeting and cash planning. Use yearly for strategic planning. Keep the time period consistent across inputs.
What is a healthy buffer above break-even?
Many businesses aim to run 20% to 30% above break-even to handle slow months and unexpected costs.

Disclaimer:
This Truck & Heavy Equipment Financing Calculator is provided for informational purposes only. It offers estimates based on the information provided and current average rates, which may vary depending on individual creditworthiness, lender policies, market conditions, and other factors. This calculator does not constitute a loan offer, lease offer, or approval from Mehmi Financial Group or its affiliates. Please contact Mehmi Financial Group directly to confirm current rates, terms, and actual financing availability. Mehmi Financial Group accepts no liability for decisions made using this calculator.

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