Break-Even Calculator
Find the sales volume needed to cover your costs with no profit and no loss. Enter fixed costs, variable cost per unit, and selling price to estimate break-even units and revenue.
Find break-even
How it works
What this result means
The break-even point is the number of units you must sell for total revenue to equal total costs. Below this point you operate at a loss; above it every additional unit contributes pure profit.
Formula:
Break-even units = Fixed costs ÷ (Price − Variable cost per unit)
Where:
Fixed costs = costs that don't change with volume (rent, salaries, equipment)
Price = selling price per unit
Variable cost = cost per unit produced or sold
(Price − Variable cost) = contribution margin per unit
- Enter your total fixed costs for the period
- Enter the selling price per unit
- Enter variable cost per unit
- Divide fixed costs by the contribution margin — result is units needed to break even
Example
$10,000 fixed costs, $50 price, $30 variable cost: contribution margin = $20. Break-even = 10,000 ÷ 20 = 500 units.
Use this tool for
- Checking how many units you need to sell before making a profit
- Testing how price or cost changes affect your target
- Planning revenue goals for a product or period
Common questions
- What are fixed vs variable costs? Fixed costs do not change with output (rent, salaries). Variable costs depend on units produced (materials, direct labor per unit).
- What if I have multiple products? Break-even is usually computed for one product or an average unit. For a mix, use a weighted average price and variable cost or run separate calculations.