1. Enter setup cost
Include one-time costs you want recovered during the selected planning horizon.
2. Enter monthly fixed overhead
Use recurring costs that do not rise directly with each sale in the simplified model.
3. Add variable cost per sale
Include costs that increase with each product or service unit sold.
4. Set expected monthly sales and horizon
Keep the sales estimate and monthly overhead aligned to the same planning period.
5. Review the break-even price
Compare the result with proposed pricing, then add any desired profit margin, taxes, or contingency separately.