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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.