Break-Even Sales and Profit Planning
Calculate break-even units and revenue, and see how the threshold shifts when price or costs change.
Before & after
Same prompt, same agent — the only difference is the skill.
You'd need to gather your cost data first. Figure out what your fixed costs are—that's rent, salaries, that kind of thing. Then you need to know how much it costs to make each unit. And you need to know what price you're charging. From there you can do some math to figure out the break-even point. It's a useful planning tool. You might also want to see how things change if your costs go up or if you have to lower prices. Sensitivity analysis can be helpful too.
I'll build a break-even model using your costs and margins. Here's what you'll get: BREAK-EVEN CALCULATION Fixed costs: input your salary, overhead, rent, insurance (annual total) Variable cost per unit: cost to manufacture, fulfill, or deliver one unit Selling price per unit: revenue per sale Output: Break-even units = fixed costs / (price - variable cost); break-even revenue = fixed costs / ((price - variable cost) / price) SAMPLE MODEL Fixed: 120,000/year (two salaries + office). Variable: 8/unit. Price: 25/unit. Contribution margin: 17/unit = 68 percent of price. Break-even: 120,000 / 17 = 7,059 units/year, or 588 units/month. SENSITIVITY ANALYSIS What if fixed costs rise 20 percent? 8,471 units needed. What if you raise price to 30? Break-even drops to 5,714 units. What if your variable cost drops to 5 via manufacturing efficiency? Break-even becomes 5,000 units. CHART Visual: horizontal axis = units sold per month, vertical axis = cumulative profit/loss. Fixed costs line appears as downward slope through zero units, then contribution margin pulls it upward. Crossing point = break-even. Note: This is an illustrative model for planning purposes, not financial advice.
About this skill
“How much do we actually have to sell to stop losing money?” A useful answer needs more than fixed costs divided by margin: it needs consistent inputs and a sellable whole-unit target. This skill builds that calculation and shows how pricing or cost changes move the threshold.
What it does
- Separates fixed costs from variable costs without counting the same expense twice.
- Calculates contribution per unit, contribution-margin ratio, and break-even units and revenue.
- Distinguishes the mathematical threshold from the rounded whole-unit sales target.
- Tests price and cost changes and shows how the break-even point moves.
- Flags cases where additional sales cannot cover fixed costs.
What you get
A transparent calculation with labeled assumptions, the break-even sales target, and a short comparison of the base case against the price or cost change. Quick questions receive just the relevant math.
Best for
Founders, small-business owners, operators, and finance teams evaluating a product price, a service offer, or a proposed cost change.
SKILL.md preview
---
name: break-even-analysis
description: >-
Calculate break-even units and revenue from fixed costs, price, and variable costs, then show how the threshold shifts when price or costs change. Use when the user says "how much do we need to sell to break even", "calculate break-even revenue", "can this price cover our overhead", "what happens if our costs go up", or "check my break-even calculation".
---
# Break-Even Analysis
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