Strategic Cost Analysis
[Image of a graph showing break even point in business]Understanding your Break-even Point and unit economics is critical for scaling any business. Our tool calculates your total cost by aggregating both fixed expenses (rent, labor) and variable expenses (materials, shipping).
Fixed vs. Variable Expenses
- Fixed: Monthly bills like rent and administrative salaries.
- Variable: Costs that rise with sales, like raw materials and packing.
How to Price for Profit
Formula: Selling Price = Unit Cost / (1 - Desired Margin %)
1
Enter your total monthly fixed overheads.
2
Input the direct variable cost of producing one item.
3
Set your desired margin (e.g., 50% for high-end retail).