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Pricing Calculator
Evaluate costs, margins, customer value, competitive positioning, and revenue objectives to develop a more informed and sustainable pricing decision.
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Calculator
Break-Even Calculator
Use this calculator to determine the sales volume and revenue required for the business to cover its fixed and variable costs.
Evaluate how price, cost structure, contribution margin, and sales volume affect financial viability. The result should help you establish realistic targets, compare operating scenarios, and recognize when the economics of an offer require adjustment.
Access the Break-Even Calculator
Evaluate how price, cost structure, contribution margin, and sales volume affect financial viability. The result should help you establish realistic targets, compare operating scenarios, and recognize when the economics of an offer require adjustment.
Purpose
What This Resource Helps You Accomplish
- Calculate contribution margin per sale
- Determine break-even sales volume
- Determine break-even revenue
- Understand how fixed and variable costs affect viability
- Test alternative pricing and cost scenarios
- Establish minimum sales targets
- Identify economically unsustainable assumptions
- Support pricing, budgeting, and operating decisions
Included
What You Will Work Through
- Selling price per unit
- Variable cost per unit
- Contribution margin per unit
- Contribution-margin percentage
- Monthly fixed costs
- Break-even unit calculation
- Break-even revenue calculation
- Daily and weekly sales targets
- Alternative pricing scenarios
- Alternative cost scenarios
- Target-profit calculation
- Margin-of-safety review
- Assumption summary
- Decision and action notes
How to Use This Resource
Turn the Tool into Action
- 01 Enter the current or proposed selling price for one unit of the offer.
- 02 Enter all variable costs directly associated with each sale.
- 03 Calculate the contribution margin available to cover fixed costs.
- 04 Enter the businessâs total recurring fixed costs for the selected period.
- 05 Review the calculated break-even units and break-even revenue.
- 06 Test how changes in price, costs, and sales volume affect the result.
- 07 Compare the required sales level with realistic market demand and operating capacity.
- 08 Revise the offer, pricing, costs, or sales plan when the break-even target is not achievable.
Ready to Begin?
Put This Resource to Work
Use the tool thoughtfully, record your decisions, and translate your conclusions into clear next steps.
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Need Help Applying This Resource?
Speak with The Cumberbatch Group about the strategic support required to move your business forward.
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