This Break Even Analysis calculator gives you the number of parts where it is more cost effective to use one machine over another.
Enter the four input values below, click "Calculate," and see the Break Even Quantity value. That number indicates the quantity of parts when you should change from one machine to the other for lowest job cost.
The input values can be expressed in time units (hours or minutes) or in money units (dollars). You must use the same units for all four inputs.
Fixed Costs typically include set up and tear down costs, tooling reconditioning charges, fixed overhead fees, etc.
Each Part Costs typically include machine run time costs, tooling costs, labor costs, variable overhead charges, etc. These must be expressed as the value per each part.