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Break-even Calculator

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ResultUpdates as you type
Break-even units500
Break-even revenue$25,000.00
Contribution margin / unit$20.00
Costs at break-even
  • Fixed costs40.0%
  • Variable costs60.0%

Find the units and revenue you need to sell to cover fixed costs. Free break-even point analysis.

The break-even point is where total revenue equals total cost — no profit, no loss. Enter your fixed costs, price per unit and variable cost per unit to find how many units you must sell.

A break-even calculator finds the sales volume where a business stops losing money and starts making it. Enter your fixed costs, the price you charge per unit and the variable cost of each unit, and it returns the number of units and the revenue needed to break even.

The engine behind it is the contribution margin — price minus variable cost. Divide fixed costs by that margin and you get the units required to cover everything. Sell one more and the full margin flows to profit, which is why understanding break-even is the first step in any pricing or launch decision.

How to use

  1. Enter your total fixed costs.
  2. Enter the price and variable cost per unit.
  3. Read the break-even units and revenue below.

Formula

Break-even is fixed costs divided by the contribution each unit makes.

Break-even unitsUnits = Fixed costs / (Price − Variable cost)
Break-even revenueRevenue = Units × Price

Worked examples

$10,000 fixed, $50 price, $30 variable

With a $20 contribution per unit, you break even at 500 units and $25,000 of revenue.

Frequently asked questions

What is the contribution margin?

It is the price per unit minus the variable cost per unit — the amount each sale contributes toward covering fixed costs and, after break-even, profit.

What happens above the break-even point?

Every unit sold beyond break-even adds its full contribution margin straight to profit, because the fixed costs are already covered.

Why must price exceed variable cost?

If the price is below the variable cost, each sale loses money and no volume can ever cover the fixed costs, so there is no break-even point.

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