Break-Even Calculator
Find your break-even point — the number of units you need to sell to cover all your costs. Enter your fixed costs, price per unit, and variable cost per unit to see break-even units and revenue.
Formula reviewed for accuracy. Our methodology & sources
Break-Even Calculator
business calculator
How It Works
The calculator first works out the contribution margin — the price of one unit minus the variable cost of producing it — which is the amount each sale contributes toward your fixed costs. Dividing total fixed costs by that margin gives the number of units you must sell before you stop losing money, and multiplying by the price gives the break-even revenue. If the variable cost is higher than the price the contribution margin is negative, which means no sales volume can ever cover costs at that pricing.
Formula
Break-Even Units = Fixed Costs ÷ (Price − Variable Cost)
Examples
$10K fixed, $50 price, $30 variable
Break even at 500 units ($25,000 revenue).
Frequently Asked Questions
What is the break-even point?
The break-even point is where total revenue equals total costs — you make neither profit nor loss. Selling beyond it generates profit; below it means a loss.
What is contribution margin?
Contribution margin is the price per unit minus the variable cost per unit. It is the amount each sale contributes toward covering fixed costs and then profit.
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