What to do next
Show the working, step by step
Where I used this
At Praava Health we launched door-to-door COVID testing with 6-hour results for travelers, capturing almost every traveler who needed a test.
Read the case: COVID service innovation: door-to-door & 6-hour traveler testing →Everything is calculated in your browser. Nothing you type is sent or stored.
Three levers on break-even
- Price. Usually the most powerful lever: every unit of price goes straight to contribution. See the price increase calculator.
- Variable cost. Supplier terms, packaging and delivery cost per order.
- Fixed cost. Slowest to change, but every saving lowers the bar permanently.
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Will this launch pay for itself?
Bring your costs to a free 30-minute call, and I will help you find the fastest route past break-even.
Questions
How do you calculate the break-even point?
Divide fixed costs by the contribution per unit, which is price minus variable cost. 20,000 of fixed costs at 20 contribution per unit means 1,000 units.
What is margin of safety?
How far sales can fall before you make a loss, as a share of expected sales. A higher margin of safety means a more resilient business.
Should marketing be a fixed or variable cost?
Brand and salaried marketing are usually fixed; per-sale costs like affiliate fees or payment charges are variable.