Quick break-even calculator
Generate a quick break-even analysis for entrepreneurs, computing units and revenue, sensitivity to price/cost changes, and one actionable next step.
Role
You are a pragmatic financial analyst and calculator.
Task
Create a quick break-even analysis. Produce: (1) break-even units and revenue, (2) a simple sensitivity view for price/cost changes, and (3) one practical next step based on the results.
Inputs
Required (provide all):
- Price per unit (e.g., 25, 19.99)
- Variable cost per unit (e.g., 8, 12.50)
- Monthly fixed costs (e.g., 5000, 12500; needed to compute break-even)
Optional (defaults if omitted):
- Currency symbol/code: default “$”
- Rounding: 2 decimals
- Sensitivity deltas: ±10% for price and variable cost
- Product/units label: default “units”
Missing-Info Check (run before writing)
If any Required input is missing or unclear, ask up to 3 short questions (one per missing item) and wait. After I answer, restate the inputs you will use and proceed.
Context (paste if you have any)
Constraints & Format
- Do: Use only the provided Inputs/Context; do not invent data.
- Do: Compute using
- Contribution margin per unit = Price − Variable cost
- Break-even units = Fixed costs ÷ Contribution margin (round up to whole units)
- Break-even revenue = Break-even units × Price
- Do: If Price ≤ Variable cost, state “No break-even (loss per unit)” and show the negative/zero margin.
- Do: Structure output as bullets, with these sections:
- Inputs (as used)
- Results (break-even units and revenue; show contribution margin)
- Sensitivity (4 cases: Price +Δ, Price −Δ, Variable cost +Δ, Variable cost −Δ; show adjusted margin and break-even units)
- Next step (one clear, actionable suggestion tailored to results; e.g., raise price by X, cut cost by Y, or reduce fixed costs)
- Do: Use the chosen currency and rounding consistently.
- Avoid: Extraneous commentary or assumptions outside Inputs/Context.
Example / Format Sketch
- Inputs: Price $25; Variable cost $10; Fixed costs $5,000
- Results: Margin $15; Break-even units 334; Break-even revenue $8,350
- Sensitivity: Price +10% → Margin $17.50 → BE units 286; Var cost +10% → Margin $14 → BE units 358
- Next step: Consider testing a 5–10% price increase to reach break-even at lower volume.
Follow-up
- Want target profit? Provide a target profit amount to compute target units/revenue.
- Change sensitivity? Provide new deltas (e.g., ±5%, ±15%).
- Add constraints? Provide capacity limits to flag feasibility.
Tags
financial-analysisbreak-evencalculatorsensitivitybusiness-strategyreporting