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Horse Feed Break-Even Price Estimator

The Horse Feed Break-Even Price Estimator calculates the minimum selling price per bag or batch unit needed to recover ingredient, packaging, direct labor, and allocated fixed costs at a planned sales volume. It separates variable unit cost from fixed-cost allocation so you can see why volume assumptions materially affect the break-even figure.

The calculator is intended for small feed businesses, private-label operations, farms selling mixed feed, or anyone evaluating a cost-based price floor. It does not determine a market-clearing price, legal selling price, or target profit margin. Freight, dealer margins, payment fees, regulatory testing, shrink, spoilage, taxes, discounts, and returns should be included separately when they are part of the actual cost structure. Reviewing the fixed-cost share also helps show how sensitive the price floor is to the planned production scale.

Production cost inputs

$
$
$
$
units
Result
—
break-even price per unit
Variable unit cost—
Fixed cost per unit—
Total cost at volume—
Fixed-cost share of price—

1. Enter ingredient cost per sale unit
Use the ingredient cost associated with one bag, tote, or other unit you intend to sell.

2. Add packaging and direct labor
Enter packaging materials and labor attributable to one unit so they are included in variable cost.

3. Enter fixed costs for the planning period
Include relevant overhead or setup costs you want the planned volume to recover.

4. Set planned units sold
Use the quantity expected to be sold during the same period represented by the fixed-cost input.

5. Review the cost floor
The main result is the per-unit price that matches entered total costs at the stated volume, before profit and omitted selling expenses.

Variable unit cost = Ingredients + Packaging + Direct labor

Fixed cost per unit = Fixed costs ÷ Planned units sold

Break-even price = Variable unit cost + Fixed cost per unit

The model assumes every planned unit is sold and uses constant variable cost per unit. Add any omitted compliance, freight, spoilage, financing, selling, or tax costs as appropriate before relying on the result.

What the result means

The main result is the cost-recovery price per sale unit at the entered production and sales volume.

A sustainable selling price typically also considers profit target, market conditions, channel costs, and applicable regulations.

Given:
$18 ingredients; $2.50 packaging; $4 labor per unit; $3,500 fixed costs; 500 units sold.

Calculation:
Variable unit cost = $18 + $2.50 + $4 = $24.50. Fixed cost per unit = $3,500 ÷ 500 = $7. Break-even price = $24.50 + $7 = $31.50.

Result:
$31.50 break-even price per unit.

Interpretation:
At 500 units, $7 of each unit’s price is allocated to fixed costs and $24.50 covers the entered variable costs.

Should freight be included in the calculator?

Include freight if it is a cost the selling price must recover. Put recurring per-unit freight into variable cost indirectly, or include period-level freight in fixed costs if that matches your accounting approach.

What happens if ingredient prices change?

Update the ingredient cost per unit. The calculator assumes the entered unit cost remains constant across the planned volume.

Why can a high-volume plan show a lower break-even price?

Fixed costs are divided among more sale units. The variable cost portion does not fall unless you also change the input assumptions.

Does break-even include a profit margin?

No. Break-even means the entered costs are recovered with zero modeled profit. Add a profit or margin calculation when setting a commercial price.

Can I use this for different package sizes?

Yes, but calculate each size separately if ingredients, packaging, labor, or expected volume differ by package size.