Business Profit & Break-Even Calculator 2.0

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Calculate profit, margins, advertising efficiency and the exact sales level needed to cover your costs. Use figures from one consistent period—normally one month—for a clear, comparable result.

Free business planning tool

See what your numbers are really saying

Enter figures for one consistent period (usually one month). The calculator separates product costs, other variable costs, advertising and payroll so nothing is counted twice. Your data stays in this browser.

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Your business inputs

How this calculator keeps costs separate

Revenue is the total earned during the period. Cost per unit is multiplied by the estimated units sold (revenue divided by average price) to calculate core cost of goods or service delivery. “Other variable costs” is only for direct costs not already included in cost per unit, such as shipping or payment fees. Advertising, payroll and fixed costs have their own fields and must not be added again elsewhere.

Formulas used

  • Units sold: Revenue ÷ average product/service price.
  • Gross profit: Revenue − unit costs − other direct variable costs.
  • Operating profit: Gross profit − ad spend − fixed costs − payroll.
  • Net profit estimate: Operating profit − estimated tax on positive profit.
  • Gross margin: Gross profit ÷ revenue.
  • Operating margin: Operating profit ÷ revenue.
  • Contribution margin: Revenue − unit costs − other variable costs − ad spend.
  • Break-even revenue: Fixed costs plus payroll ÷ contribution margin ratio.
  • Break-even units: Break-even revenue ÷ average price, rounded up.
  • ROAS: Revenue ÷ ad spend.
  • CAC ceiling: Price − unit cost − other variable cost per unit, before fixed costs and profit.
  • Margin of safety: (Revenue − break-even revenue) ÷ revenue.

Frequently asked questions

Why is break-even sometimes unavailable?

Break-even requires a positive contribution margin. It cannot be calculated when price does not exceed variable costs, or when zero revenue makes period-level variable cost ratios impossible to estimate.

Is ROAS the same as profit?

No. ROAS compares revenue with advertising spend only. Profit also accounts for delivery costs, payroll, fixed costs and estimated tax.

Does this replace an accountant?

No. The results are general planning estimates based on your inputs. They are not financial, accounting, tax or investment advice and may not reflect timing, depreciation, financing, local rules or industry-specific accounting.