Break-Even Calculator
Calculate the break-even point in units and revenue for your product or business.
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How to use this calculator
The number of units you must sell to cover all costs with zero profit or loss.
- 1
Enter your total fixed costs (rent, salaries, insurance — costs that don't change with output).
- 2
Enter the price you sell each unit for.
- 3
Enter the variable cost per unit (materials, packaging — costs that scale with output).
- 4
The result shows how many units you must sell to break even.
Frequently asked questions
What formula does this tool use?
This tool uses Break-Even Units = Fixed Costs ÷ (Price − Variable Cost per Unit). The denominator, price minus variable cost, is the Contribution per Unit, and Contribution Margin is that contribution divided by price, times 100.
Why do the units and revenue not multiply out exactly?
Units are rounded up to the next whole unit, but Break-Even Revenue uses the exact, unrounded units times price. In the default case the units show 334, yet revenue is $16,666.67, not 334 × $50 = $16,700.00.
Does rounding up change profit?
Slightly. At exactly 334 units the default plan earns 334 × $30 − $10,000 = $20 above break-even, because the unrounded answer is 333.33 units. The tool rounds up so you are never told a quantity that falls short of covering costs.
What happens when price is not above variable cost?
There is no break-even point, because each sale adds nothing or loses money. The tool shows an error saying the selling price must be greater than the variable cost. A price equal to variable cost, such as $20 and $20, triggers the same message.
What if fixed costs are 0?
Break-even is 0 units and $0.00 of revenue, because there is nothing to recover. Negative fixed costs are rejected with an error message instead of returning negative units.
How do I aim for a profit target?
Add the profit you want to the fixed costs field. The units shown are then those needed to cover costs and reach that profit, since the formula treats the field as the total amount to be covered by contribution.
Which period should the inputs cover?
Fixed costs are labelled per period, so the answer is the units needed in that same period. Use a monthly fixed cost for a monthly answer. Price and variable cost are per unit and do not change with the period.
What is not modelled?
One product at one price. There are no discounts, volume tiers, semi-variable costs, taxes, multiple products with a sales mix, or the timing of cash. Real costs that rise with scale will move the answer.
Break-even analysis from fixed cost, price and variable cost
Contribution is the key number
Each unit sold contributes its price minus its variable cost toward fixed costs. Fixed costs are covered when the number of units multiplied by that contribution equals the fixed total. The tool divides fixed costs by contribution to find the units, multiplies the same exact figure by price for revenue, and reports contribution margin as the share of each sale that is contribution.
Worked example: the built-in business
The figures built into this tool are $10,000 of fixed costs, a $50 price and $20 of variable cost. Running them gives 334 units, $16,666.67 of break-even revenue, $30.00 contribution per unit and a 60.0% contribution margin. A different shape: $24,000 of fixed costs, an $8.50 price and $3.25 variable cost give 4,572 units and $38,857.14 of revenue, with $5.25 contribution and a 61.8% margin. A thin-volume case, $5,000 fixed, $120 price and $85 variable, needs only 143 units for $17,142.86 of revenue.
What a price change does to the target
The table keeps $10,000 of fixed costs and $20 of variable cost and tries three prices. A higher price lifts contribution and cuts the units needed, but revenue at break-even falls too because fewer units are involved. The tool does not model demand, so it cannot say whether customers would still buy at the higher price.
| Selling price | Break-even units | Break-even revenue | Contribution margin |
|---|---|---|---|
| $40 | 500 | $20,000.00 | 50.0% |
| $50 | 334 | $16,666.67 | 60.0% |
| $60 | 250 | $15,000.00 | 66.7% |
Impossible and zero cases
When the price equals the variable cost, the tool will not divide by zero. It reports an error because nothing can ever be recovered. With no fixed costs the answer is 0 units. These guard rails mean a zero field, which is also what an emptied box becomes, gives a clear statement rather than Infinity or a negative quantity. A price of 0 gives the selling-price error, while a variable cost of 0 simply makes the whole price the contribution per unit.
Using the answer sensibly
Break-even tells you the floor, not the plan. Compare the unit figure with what you can realistically sell in the same period, and test the cost side by raising variable cost or fixed cost to see how fragile the result is. Anything not in the three inputs, from seasonal swings to shared costs across products, needs separate treatment.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →