Break-Even Calculator

Units Needed at Different Profit Targets

Profit margin targets show how many additional units you need to sell beyond break-even to achieve the specified profit as a percentage of revenue.

Break-even analysis is one of the most fundamental financial calculations any Saudi business owner needs to understand. The break-even point is the exact level of sales at which total revenue equals total costs — you are neither making a profit nor a loss. To calculate it, you need three numbers: your total fixed costs per month (rent, salaries, utilities, software subscriptions, and other costs that do not change with sales volume), your selling price per unit, and your variable cost per unit (raw materials, packaging, shipping, and sales commissions that increase with each unit sold). The difference between price and variable cost is called the contribution margin — each unit sold contributes this amount toward covering your fixed costs. Dividing fixed costs by the contribution margin gives you the break-even volume in units. Multiply that by the selling price to get your break-even revenue. Saudi banks and the Small and Medium Enterprises General Authority (Monsha'at) routinely request break-even analysis as part of business plan and feasibility study submissions. A clear break-even analysis shows investors and lenders that you understand your cost structure and have a realistic plan to reach profitability. Vision 2030 has significantly increased the number of new business registrations in the Kingdom, making accurate financial planning tools more important than ever for Saudi entrepreneurs.