Finance Tools
Cost Inflation Break-Even Price Calculator
Calculate the break-even selling price needed to offset cost inflation and keep profit at zero (no loss).
Calculate the break-even selling price needed after cost inflation so that profit does not turn negative.
Your current price per unit.
Used to estimate total profit impact.
Your current cost per unit.
Expected cost inflation.
After inflation
New cost per unit: $16.80
Break-even price: $16.80
Price adjustment
Required price change: -$8.20
Required change (% of current): -32.80%
Profit impact if price stays the same
Profit/unit before: $10.00
Profit/unit after: $8.20
Total profit change: -$18,000
Your current price is already above break-even (you still avoid losses).
How it works
- New cost = current cost × (1 + inflation%).
- Break-even price (profit = 0) equals the new cost per unit.
- Required price change = break-even price − current price.
FAQ
Why is break-even price equal to cost?
This tool defines break-even as profit = 0 per unit (ignoring fixed costs). It’s a quick unit-level break-even.
What if I have fixed costs?
Then break-even price is higher. Use a full contribution margin or fixed-cost break-even model for that case.
How to use this cost inflation break-even price calculator
- Enter current selling price per unit and units sold.
- Enter current cost per unit and expected cost increase (%).
- Review the break-even price per unit needed to avoid losses.
- Optionally compare to your current price to see required price increase.
Example
You sell at $25 with cost $15 per unit. Costs rise 12%. You sell 10,000 units.
- New cost = 15 × 1.12 = 16.80
- Break-even price = new cost (profit = 0)
- Required price increase = 16.80 − 25 (if current price already above break-even, you’re still profitable)
More tools in Finance Tools
- Required Price Increase to Offset Cost Inflation Calculator
Calculate the required price increase to keep the same total profit after unit costs rise, assuming sales volume stays constant.
- Required Volume Increase to Offset Cost Inflation Calculator
Calculate how much sales volume must increase to offset higher input costs and maintain the same total profit when prices cannot be raised.
- Unit Cost Increase Break-Even Yield Calculator
Estimate how many additional units you must produce or sell to break even after a unit cost increase (assuming selling price stays the same).
- Price Increase vs Volume Drop Break-Even Calculator
Calculate how much sales volume can drop after a price increase while keeping total gross profit (or contribution profit) the same.