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Break-even Analysis

Estimate the minimum units required to cover fixed costs using selling price, variable cost, commercial deductions, and contribution margin.

Enter selling price, variable cost, fixed costs, and commercial deductions to estimate the sales volume required to break even.

This tool calculates contribution per garment after discounts, fees, and freight-out, then uses that contribution to recover fixed costs.

Selling price

USD / garment

Cost structure

USD / garment
USD

Commercial deductions

Add selling deductions that reduce net revenue and profitability.

%
%
USD / garment

Results

Estimated break-even volume based on the current inputs.

Enter your break-even inputs and click Calculate to see the required sales volume.

How to use this tool

  1. Choose your currency and unit system.
  2. Import or enter selling price per garment.
  3. Import or enter variable cost per garment.
  4. Enter fixed costs for the order, campaign, or period.
  5. Add discounts, fees, and freight-out if they affect contribution.
  6. Click Calculate to review break-even volume.

What this tool estimates

This tool estimates break-even units, net revenue per garment, contribution per garment, gross revenue at break-even, and net revenue at break-even. It is intended for apparel pricing, production planning, and order feasibility analysis.

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Frequently Asked Questions

What is contribution margin?▼
Contribution margin is the amount remaining per garment after deducting variable cost and selling deductions from net revenue. It is the amount available to recover fixed costs.
Why can break-even be impossible?▼
Break-even is not achievable when contribution per garment is zero or negative. In that case, selling more units does not recover fixed costs.
Should discounts and fees be included in break-even analysis?▼
Yes, if they reduce the revenue you actually keep. Discounts, fees, and freight-out lower contribution per garment and can increase the break-even volume.
Should I use nominal price or net revenue for break-even?▼
Break-even should be based on the revenue you actually keep. If discounts, fees, or freight-out apply, they should be included so that contribution per garment reflects real conditions.
What if break-even units are very high?▼
A very high break-even volume usually indicates low contribution per garment or high fixed costs. Adjusting price, reducing costs, or improving efficiency may be necessary.
What is the difference between fixed and variable cost?▼
Variable cost is calculated per garment and changes with production volume. Fixed costs are total and do not depend on how many units are produced.