Master your break-even analysis

Your break-even point is calculated by dividing your fixed costs by your contribution margin (1 - variable cost ratio). For example, with €50,000 in fixed costs and a 30% variable cost ratio, your break-even point is €71,429 in revenue. Trezy calculates this automatically and shows you exactly where you stand.

Fixed costs (like rent, salaries, insurance) stay constant regardless of sales volume. Variable costs (like materials, shipping, commissions) increase with each sale. Understanding this distinction is crucial because it determines your contribution margin—how much each sale contributes to covering fixed costs and generating profit.

Review your break-even analysis at least monthly, or whenever you make significant changes to costs or pricing. With Trezy's real-time calculator, you can check your position anytime and model different scenarios instantly. Many successful businesses check weekly to ensure they're on track toward profitability goals.

Absolutely! While our calculator shows overall business break-even, you can model individual products by isolating their specific variable costs and allocating relevant fixed costs. For complex product mixes, Trezy's full platform offers advanced analysis tools to understand break-even at the product, department, or business unit level.