If I price this new product a certain way, when do I actually start making money?

Break-even is the number of units you need to sell to cover your fixed costs (rent, salaries — costs that don't move with sales volume) and variable costs (like the cost of materials per unit) before you make any actual profit. The calculation: contribution margin per unit = selling price minus variable cost per unit, and break-even units = fixed costs divided by contribution margin per unit.

For example: a product sells for AED 100 with a variable cost of AED 60, giving a contribution margin of AED 40. With AED 20,000 in monthly fixed costs, you'd need to sell exactly 500 units before seeing any real profit. At RASEEKH, we help business owners run this calculation before a pricing decision or product launch, not after.