Find how many units you need to sell to cover your costs and start making a profit.
Rent, tools, setup, one-time costs.
Your break-even point is the number of units where total revenue equals total cost. Below it you lose money; above it you profit. The formula is fixed costs divided by the contribution per unit (price minus variable cost per unit).
Contribution per unit is what each sale contributes toward covering your fixed costs. The higher it is, the fewer units you need to break even. If your price does not exceed your variable cost, you can never break even, that is a signal to raise price or cut cost.
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