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Break-Even Point
Calculate your break-even point and the number of units to sell.
Results
Break-even = Fixed costs / Contribution margin rate. Below = loss. Above = profit.
📐 Break-even point formula
Break-even = fixed costs ÷ contribution margin rate
Contribution margin rate = (turnover − variable costs) ÷ turnover
Contribution margin rate = (turnover − variable costs) ÷ turnover
📊 Example (fixed costs 120,000 MAD)
| Margin rate | Break-even turnover |
|---|---|
| 30% | 400,000 MAD |
| 40% | 300,000 MAD |
| 50% | 240,000 MAD |
💼 Break-even scenarios
Fixed costs 60,000, margin rate 40%
Break-even = 60,000 ÷ 0.40 = 150,000 MAD of turnover.
Reaching break-even in months
At 20,000 MAD monthly turnover, you reach it after about 7.5 months.
💡 Practical tips
- Every sale above break-even becomes net profit.
- Lower fixed costs or raise your margin to reach break-even faster.
- Use break-even to assess any project before launching it.
⚠️ Limits and disclaimer
- The model assumes stable prices and costs.
- It ignores seasonality or demand changes.
Official sources: Accounting and management principles · General Tax Code (DGI).
Last updated: February 2026.
Last updated: February 2026.
❓ Frequently asked questions
What is the break-even point?
The turnover at which revenue equals total costs, with no profit or loss.
How is it calculated?
By dividing fixed costs by the contribution margin rate.
How do I reach it faster?
By lowering fixed costs or raising the margin on each unit sold.
Method and reliability: informative estimate based on the stated parameters and reviewed in July 2026. See our calculation method and sources. Seek qualified professional advice before an important tax, legal, medical or financial decision.