Profit Pivot.

It is the point at which total cost and total revenue are equal, resulting in no net loss or gain.

Formula: Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).

Expenses that do not change regardless of how much you sell, such as rent, salaries, and insurance.

Costs that vary directly with production volume, like raw materials, packaging, and shipping.

It is the Selling Price per unit minus the Variable Cost per unit.

It helps businesses set sales targets, price products correctly, and analyze the viability of a business model.

Yes. Instead of units, use billable hours or number of clients to find the point where costs are covered.

By decreasing fixed costs, lowering variable costs, or increasing the selling price.

Standard break-even analysis is usually done pre-tax. Post-tax analysis requires factoring in the effective tax rate.

The amount of sales above the break-even point. It represents how much sales can drop before the business starts losing money.

Review it quarterly or whenever there is a significant change in your costs or pricing.

A unit can be a subscription month, a project fee, or a consulting hour.

Every unit sold after the break-even point contributes directly to the business's net profit.

Yes. Rising costs of raw materials and rent will push the break-even point higher.

The ratio of fixed costs to total costs. High operating leverage means a small change in sales can lead to a large change in profit.

Absolutely. It is a fundamental tool for startups to show investors when the company will become self-sustaining.

A version that excludes non-cash expenses like depreciation to show the actual cash flow needed to survive.

Yes. HQCalc uses the standard accounting formula for cost-volume-profit analysis.

Yes. Use your average ticket size as the selling price and your average COGS as the variable cost.

Yes. All professional business calculators on HQCalc are free to use.