Connect via MCP →

Enter Calculation

Formula

Show calculation steps (2)
  1. Break-Even Cups

    Break-Even Cups: Lemonade Stand Calculator

    Break-Even = Fixed Costs divided by the per-cup margin (Price - Cost)

  2. Profit Margin (%)

    Profit Margin (%): Lemonade Stand Calculator

    Margin = Profit divided by Revenue, times 100; Revenue = Price times Cups

Advertisement

Results

Net Profit
$25
total earnings after costs
Total Revenue $50
Total Cost $25
Profit per Cup $0.25
Profit Margin 50%
Break-Even Cups 28.57 cups

What Is the Lemonade Stand Calculator?

The Lemonade Stand Calculator is a fun and educational tool that turns a classic kid's business into a real lesson in economics. Enter how much you charge per cup, what each cup costs to make, how many cups you sold, and any fixed costs (like a sign, table rental or a one-time supply purchase), and the calculator instantly shows your net profit, total revenue, profit margin, and the number of cups you need to sell to break even.

How to Use It

Fill in four fields: Price per Cup (what customers pay), Cost per Cup (ingredients and the cup itself), Cups Sold, and Fixed Costs (expenses that don't change with how many cups you sell). Click calculate to see your bottom line. Try adjusting the price or the number of cups to see how your profit changes.

The Formula Explained

Profit equals total revenue minus total cost. Revenue is the price per cup multiplied by cups sold. Total cost adds the variable cost (cost per cup times cups sold) to your fixed costs:

$$\text{Profit} = \left(\text{Price} \times \text{Cups}\right) - \left(\text{Cost} \times \text{Cups} + \text{Fixed Costs}\right)$$

The break-even point tells you how many cups cover your fixed costs: $$\text{Fixed Costs} \div \left(\text{Price} - \text{Cost}\right)$$ Every cup beyond that is pure profit.

Bar diagram splitting lemonade stand revenue into variable cost, fixed cost and profit
Revenue minus variable costs (C\(\times\)Q) and fixed costs (F) leaves profit.

Worked Example

Suppose you sell lemonade at $0.50 per cup, each cup costs $0.15 to make, you sold 100 cups, and you spent $10 on a sign. Revenue = \(0.50 \times 100 = \$50\). Variable cost = \(0.15 \times 100 = \$15\). Total cost = \(15 + 10 = \$25\). Profit = \(50 - 25 =\) $25. Your margin is 50% and you break even after \(10 \div \left(0.50 - 0.15\right) \approx 28.6\) cups.

Line chart where revenue line crosses total cost line at the break-even point
The break-even point is where total revenue equals total cost.

FAQ

What are fixed costs? Costs that stay the same no matter how many cups you sell — like a table, a sign, or a permit.

What is profit margin? Profit divided by revenue, expressed as a percentage. It shows how much of each sales dollar you keep.

What if I sell fewer cups than break-even? Then your profit will be negative — you'll lose money until sales cover your fixed costs.

Last updated: