REAL-WORLD MATHEMATICS
How to Calculate Business Profit and Break-Even Point
Explore revenue, costs and break-even with a free interactive business profit graph. Learn the profit formula through real examples.
Why this matters in real life
A company needs to earn more from sales than it spends on making products and paying fixed expenses. Graphing both revenue and costs makes their intersection visible.
Business Profit Calculator and Break-Even Graph
A product sells for $30, costs $12 to make, and the business pays $600 in fixed costs. Explore how sales affect profit.
Model: Profit = 30q − (600 + 12q) = 18q − 600
Model assumptions: Assumes every product sells for $30 and costs $12 to make, with fixed costs of $600. Ignores taxes, returns and capacity limits.
Predict · Explain · Check
Why is profit negative at zero sales? How many whole products are needed to avoid a loss?
Self-check only. Your writing stays in this browser session.How profit differs from revenue
Revenue is money received from sales; profit is what remains after expenses. When revenue equals total costs, the business breaks even.
Why a company can lose money despite making sales
A profitable business can still face cash-flow constraints. This simplified model does not include taxes, returns, discounts or changing costs.
Practice what you learned
Change the slider, make a prediction before looking at the graph, and explain the answer using units. Then try a different input to check whether your reasoning still holds.
Keep practicing
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