Break-Even Calculator — South Africa
Calculate your break-even point in units and revenue. Find your contribution margin and margin of safety.
Last updated: May 2026
Rent, salaries, insurance, subscriptions — costs that don't change with sales volume.
Materials, packaging, commissions — per unit sold.
The price you charge customers (incl. VAT if applicable).
Calculates the minimum sales volume and revenue your business needs to cover all costs — the point where you are neither making a profit nor a loss. Enter your fixed costs, variable cost per unit, and selling price per unit. The calculator shows your break-even in units, rand revenue, and your current margin of safety if you enter an actual sales figure.
Key inputs explained
- Fixed costs
- Costs that do not change with sales volume — rent, salaries, insurance, subscriptions, loan repayments. These must be covered regardless of how much you sell.
- Variable cost per unit
- The direct cost to produce or deliver one unit — materials, packaging, direct labour, commissions. This scales proportionally with sales.
- Selling price per unit
- The price you charge per unit sold, excluding VAT if you are VAT-registered.
Your break-even point shifts every time you change your pricing or cost structure. If you are considering a price increase, even a small one can dramatically lower your break-even volume — which is often more powerful than trying to cut costs. Use this calculator to test both levers before deciding.
Frequently Asked Questions
Break-even analysis identifies the point at which total revenue equals total costs — you are neither making a profit nor a loss. Below break-even you are losing money; above it you are profitable. It is a fundamental planning tool for any business to understand minimum viable sales volume and pricing decisions.
Contribution margin = Selling price per unit minus Variable cost per unit. It represents what each unit sold contributes toward covering fixed costs and eventually generating profit. A higher contribution margin means fewer units need to be sold to break even. Contribution margin as a percentage of selling price is the contribution margin ratio.
The margin of safety is the difference between your actual (or projected) sales and the break-even sales level — expressed in rands or as a percentage. It shows how much sales can fall before you start making a loss. A margin of safety of 20% means sales can decline by 20% before you reach break-even.
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