Break-Even Calculator
Find the break-even point in units and revenue from fixed costs, price per unit and variable cost per unit, plus the units needed to reach a target profit.
Results
- Break-even units = fixed costs ÷ (price − variable cost). Units are rounded up to whole units.
What is Break-Even Calculator?
Calculates how many units you must sell to cover all fixed costs, the corresponding revenue, the contribution margin per unit and its ratio, and optionally the units and revenue needed for a target profit.
How to use Break-Even Calculator
- Enter your Fixed costs for the period.
- Enter the Price per unit and Variable cost per unit.
- Optionally enter a Target profit.
Example
Fixed costs 10,000, price 50, variable cost 30
Break-even 500 units, revenue 25,000.00; contribution 20.00 per unit (40%)
When to use Break-Even Calculator
Use it for business plans, pricing decisions and product launches. It assumes a constant price and variable cost per unit and that every unit produced is sold.
How Break-Even Calculator works
Contribution margin per unit = price − variable cost, and the ratio = contribution ÷ price. Break-even units = fixed costs ÷ contribution, rounded up to whole units (the exact value is shown too). Break-even revenue = units × price. Units for a target profit = (fixed costs + target) ÷ contribution.
Common Use Cases
- Checking the viability of a new product
- Seeing how a price increase lowers the break-even point
- Setting a monthly sales target
- Explaining contribution margin to a team
FAQs
What counts as fixed cost?
Costs that do not change with volume in the period: rent, salaries, insurance, software subscriptions.
Why are units rounded up?
You cannot sell a fraction of a unit, and selling one fewer would leave a loss.
What if price is below variable cost?
Every sale loses money, so there is no break-even point; the tool shows an error.