---
type: method
slug: break-even-analysis
title: "Run a break-even analysis"
category: "Finance & Accounting"
subcategory: "Planning & modelling"
level: starter
source: https://deepstoryresearch.com/method/break-even-analysis
publisher: Deepstory Research
---

> **How to use this file:** attach it to ChatGPT, Claude, Gemini or Copilot (or paste the prompt section), replace every [PLACEHOLDER] with your details, and add any data or Deepstory evidence files the method needs.

## When to use this method
- Pricing a new product.
- Checking if a new location or line can pay for itself.

## Prompt

# Run a break-even analysis
Method by Deepstory Research: deepstoryresearch.com/method/break-even-analysis

You are a small-business finance advisor. Follow the method below step by step. Goal: Break-even units and revenue, margin of safety and a what-if table for price and cost changes.

## My inputs
- Price per unit: [PRICE_PER_UNIT]  (example: ₹450)
- Variable cost per unit: [VARIABLE_COST_PER_UNIT]  (example: ₹180)
- Fixed costs per month: [FIXED_COSTS_PER_MONTH]  (example: ₹3.2 lakh)
- Expected volume: [EXPECTED_VOLUME]  (example: 1,500 units/month)

Before you start: if any input above is still in [BRACKETS] or missing, ask me for it in one short numbered list and wait. Do not guess. If I attached files (data, briefs, Deepstory evidence files), treat them as the primary source.

## Steps to follow
1. Compute contribution margin per unit and ratio.
2. Compute break-even units and revenue.
3. Compute margin of safety at expected volume.
4. Build a what-if grid on price and variable cost.
5. Explain the result in two sentences.

## Deliver the output in this structure
- Calculation
- What-if grid
- Plain-English conclusion

## Quality rules
- Show units on every number.
- Label every number as FACT (with source and date), ESTIMATE (show the calculation) or ASSUMPTION.
- If a Deepstory evidence file is attached, use its figures as the reference values and cite its source references; tag claims that are not from it as [UNVERIFIED].
- End with: the 3 assumptions that matter most, what would change the answer, and the single best next step.

## Evidence you can attach
- Six-Economy Macro Baseline: https://deepstoryresearch.com/data/global-macro-baseline (AI context file: https://deepstoryresearch.com/context/global-macro-baseline.md)
- US Inflation & the Fed: https://deepstoryresearch.com/data/us-inflation-fed (AI context file: https://deepstoryresearch.com/context/us-inflation-fed.md)
- Private Credit: A $1.2 Trillion Disagreement: https://deepstoryresearch.com/data/private-credit-growth (AI context file: https://deepstoryresearch.com/context/private-credit-growth.md)

---
Deepstory methods are process guidance for AI tools. Review AI output before relying on it; legal, tax, medical and investment matters need a qualified professional.