Break-even Analysis - When will I start making money?
Find out how many units you need to sell to cover all your costs and start turning a profit. See different scenarios and plan ahead.
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Tip: Fixed costs are what you pay regardless of sales (rent, salaries). Variable costs change with every unit sold (materials, commissions).
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How to lower your break-even point
1. Cut fixed costs
Review lease terms, negotiate with suppliers, automate processes. Every euro saved lowers your break-even point.
2. Increase your margin
Raise prices or lower production costs. Even a 5% margin increase can dramatically cut the number of sales you need.
3. Optimize your product mix
Focus on the products with the highest margin. Drop low-margin items that just "drag the average down."
4. Track it regularly
Break-even analysis should be redone every quarter. Costs change, prices change — your plan needs to change too.
What do these numbers mean?
Break-even point
The number of sales where your revenue equals your costs. Past this point — profit; before it — losses.
Contribution margin
What’s left after covering variable costs. This is the money that pays off fixed costs and turns into profit.
Profit scenarios
Different sales volumes and their impact on profit. Helps you plan realistically and spot opportunities.
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