---
title: "Operating Leverage and Break-Even Calculator | MCC Solutions"
description: "Enter units, price, variable cost and fixed cost to get break-even, margin of safety and degree of operating leverage. Free and private."
url: "https://mcc-solutionsnj.com/bookkeeping/operating-leverage-and-break-even-calculator"
---

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.

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Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software)

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.

Want a second pair of eyes on your books? [A free bookkeeping health check](/bookkeeping/health-check).

The [Financial Suite](/bookkeeping/financial-suite) includes this and 9 more tools for $49. Members get this included. [See the membership](/membership) or [sign in](/membership/login). 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.

Related: [operating margin calculator](/bookkeeping/operating-margin-calculator), [net profit margin calculator](/bookkeeping/net-profit-margin-calculator). See [all free tools](/free-tools). More free tools: [ROI and payback calculator](/bookkeeping/roi-and-payback-calculator), [Debt-to-income ratio calculator](/bookkeeping/debt-to-income-ratio-calculator), [NPV, IRR and payback calculator](/bookkeeping/npv-irr-payback-calculator), or [see all free tools](/free-tools).

Free

### Month-End Close Checklist (PDF)

The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.

General information, not tax or legal advice. [How we write and check our tools](/editorial-standards).

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.

[See what is inside ($24)](/toolkits/break-even-and-pricing-workbook) [Try the free starter](/toolkits/break-even-and-pricing-workbook#free-starter)

Also in the [Business Planning Bundle](/toolkits/business-planning-bundle): 4 products for $79 instead of $106 separately.

Tallyfinch

### Books you keep on your own computer

Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.

[See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software)

## Want your books and numbers handled?

[Free health check](/bookkeeping/health-check)[Call (908) 444-6373](tel:+19084446373)