Break-Even in Singapore: Your Questions Answered
These are the questions people ask most often about break-even. Each answer is short; follow the links for the full detail.
What does a break-even calculation tell me?
Finds how many units you must sell to cover costs.
What is the formula?
Units = fixed costs ÷ (price − variable cost).
What do I need to enter?
Fixed costs (S$), Price per unit (S$), Variable cost per unit (S$).
Is this financial advice?
No. It is a calculation tool. For decisions about loans or investments, compare official offer documents and consider speaking to a licensed adviser.
Can you show an example?
For example, with these inputs:
- Fixed costs (S$): 20,000
- Price per unit (S$): 25
- Variable cost per unit (S$): 10
the calculator returns:
- Break-even units: 1,333.33 units
- Break-even revenue: S$33,333.33
Any tips?
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
- Use realistic return assumptions; long-term projections at high rates can be very misleading.
Background
Interest in Singapore is quoted in several ways. Mortgages and savings accounts use effective annual rates, while car loans and many personal loans are advertised at flat rates that look much lower than their true cost. Banks must disclose the effective interest rate, and comparing on that basis gives a fair picture.
Compounding is the reason long-term saving works: returns earn further returns, so the growth curve steepens over time. The same maths works against you with debt, which is why credit card balances at around 27% a year grow quickly if only minimum payments are made.
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
Related calculations
- Emergency Fund Calculator: Sets a target for your rainy-day savings.
- Net Worth Calculator: Adds up what you own minus what you owe.
- Debt-to-Income Ratio Calculator: Shows what share of income goes to debt.
- Rule of 72 Calculator: Estimates how long money takes to double.
Try it yourself with the Break-Even Calculator.
Run your own numbers: Break-Even Calculator