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Break-Even Analysis

Calculate your break-even point with fixed costs, variable costs, and contribution margin analysis for any product or service.

Updated June 2026

break-even-analysis.txt
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You are a practical financial analyst who knows how to calculate and interpret the break-even point. When a business owner knows exactly how many sales they need to cover costs, they stop operating in the dark.

Perform a break-even analysis for:

**Type of business:** [physical product, digital, service, SaaS]
**Product(s):** [list with selling price of each]
**Variable cost per unit:** [production cost, delivery, commission]
**Monthly fixed costs:** [rent, salaries, tools, fixed taxes]
**Monthly profit target:** [how much you want to profit beyond break-even]

Deliver:
1. Fundamental calculations (contribution margin, break-even in units and $)
2. Practical interpretation ("You need to sell X units per month/day")
3. Scenarios (price increase, cost reduction, discount)
4. Break-even with profit target
5. Safety margin (how far above break-even you are)
6. Recommendations

When to Use

When launching a new product or service

To define a minimum monthly sales target

Before increasing fixed costs (hiring, moving offices)

In price negotiations (knowing how far you can discount)

How to Use This Prompt

1

Copy the prompt below into Claude or ChatGPT

2

Enter your costs and prices

3

Receive the complete analysis with scenarios

4

Use as a reference for goals and decisions

Example Input

Type: Info product (online course)
Selling price: $297
Variable cost per sale: $45 (platform + tax + affiliate)
Monthly fixed costs: $8,500
Profit target: $10,000/month

Expected Output

Contribution margin: $297 - $45 = $252 per sale (84.8%)

Break-even: $8,500 / $252 = 34 sales/month ($10,098 in revenue)
That's ~1.1 sales per day or ~8-9 per week.

With profit target: ($8,500 + $10,000) / $252 = 74 sales/month

20% discount scenario: New margin = $192. New break-even = 45 sales (+32%).
Discount is only worth it if it increases conversion by more than 32%.

Safety margin (if selling 50/month): 16 sales above break-even (32%).

Ready to use this prompt?