The break-even point equals the fixed-cost difference divided by the per-unit savings, provided the supposedly cheaper-running option actually saves money per unit.
A unit can represent a month, year, item produced, trip, user, or another repeated measure.
The calculator checks whether the cost lines cross and which option costs less at expected use.
The crossing point tells you when cumulative costs match. You still need to decide whether expected use reaches that point and whether both options meet the job.
Maintenance, energy, support, and usage can vary. Recalculate with realistic low and high values to see whether the crossing point is stable.
If one option has both the lower fixed cost and lower recurring cost, it dominates on entered cost. Non-price benefits may still matter.
Option A has no setup fee and costs 18 per month. Option B costs 240 to start and 8 per month. B saves 10 for every month of use, so its higher entry cost is recovered after 24 months. At 18 months, A costs 324 and B costs 384. At 36 months, A costs 648 and B costs 528.
| Use horizon | Option A | Option B |
|---|---|---|
| 18 months | 324 | 384 |
| 24 months | 432 | 432 |
| 36 months | 648 | 528 |
The result matters only if both options remain available and suitable for the whole period. Add expected cancellation, maintenance, financing, and switching costs to the appropriate fixed or recurring input. If the likely use is close to 24 months, test a range rather than treating the crossing point as a forecast.
Record the realistic use horizon and every cost excluded from the crossing point.
Use the two-option comparison engine to preserve constraints, evidence, and missing facts beside this calculation. Read the EITHER.SO comparison methodology before treating any calculated lead as final.
Check whether the options ever cross and whether expected use lasts long enough to recover the higher entry cost.
A unit can be a month, year, trip, user, item produced, service call, or any repeated measure. Both options must use the same unit and time basis, and recurring costs should include only amounts that change with that unit.
Compare products by total costThe cost lines do not cross when one option starts cheaper and also costs less per unit, or when both options have the same recurring cost. The result explains which entered cost structure dominates instead of inventing a crossing point.
Review the comparison methodologyOnly if expected use reaches the crossing point with enough margin and both options meet the job. Test uncertain lifespan, maintenance, cancellation, and switching assumptions before relying on a narrow cost advantage.
Check whether switching costs repay