Paid calculator
Operating leverage and break-even calculator
See how much a swing in sales moves your profit. Enter units sold, price, variable cost per unit and fixed costs.
Paid calculator
Operating leverage and break-even calculator
Buy this calculator on its own for $9, one time. No membership needed. It runs in your browser and nothing you enter is sent to us or saved. Read how it works and the questions below first.
The Financial Suite includes this and 9 more tools for $49. Members get this included. See the membership or sign in. Already bought it? Email me my access link.
How it works
How it works
Contribution per unit = price - variable cost. Break-even units = fixed costs / contribution per unit. Margin of safety is how far sales can fall before profit hits zero. Degree of operating leverage = total contribution / operating profit, so a 2.5x result means a 10% rise in volume lifts operating profit about 25%.
FAQ
About this calculator
What are fixed and variable costs?
Fixed costs, such as rent, do not move with volume. Variable costs, such as materials, rise with each unit sold.
Is high operating leverage bad?
It magnifies both gains and losses. It pays off when sales are growing and hurts when they fall.
Can I test a price change?
Yes. Change the price or variable cost and compare the break-even and margin of safety.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
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Excel workbook
Break-Even and Pricing Workbook
Enter your fixed costs and what each product or service costs and sells for, then see the sales you need and the price that reaches your target margin.
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