Break-Even Calculator
Calculate the break-even point in units and revenue for your product or business.
Did this tool work for you?
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 is the break-even point?
The break-even point is the level of sales at which total revenue equals total costs — you make neither a profit nor a loss. Every unit sold beyond break-even contributes to profit.
What are fixed vs variable costs?
Fixed costs stay constant regardless of output: rent, salaries, insurance, equipment depreciation. Variable costs change with production volume: raw materials, packaging, shipping, sales commissions.
What is contribution margin?
Contribution margin = Selling Price − Variable Cost per Unit. It is the amount each unit "contributes" to covering fixed costs and eventually generating profit. A higher contribution margin means you need to sell fewer units to break even.
How do I use break-even analysis?
Use it to: set minimum sales targets, evaluate pricing changes, assess new products before launch, model the effect of cost increases, and plan how many units you must sell to justify a fixed investment.
Break-even analysis for business
Why break-even analysis matters
Before launching a product or business, knowing your break-even point tells you the minimum viable scale. If your break-even requires selling 50,000 units per month but your market can support only 5,000, the business model needs rethinking — before you invest.
Break-even and pricing decisions
Lowering your price reduces contribution margin and pushes break-even higher. Raising your price increases margin and lowers break-even — but may reduce demand. Break-even analysis helps you find the pricing sweet spot: low enough to attract customers, high enough to cover costs at a realistic volume.
Limitations of break-even analysis
Break-even analysis assumes constant price and variable cost per unit, which is often not true at scale. It ignores inventory, timing of cash flows, and market demand. Use it as a starting point for financial planning, not a complete business evaluation.
Learn more from an authoritative source:
InvestopediaProfit Margin Calculator
Calculate gross profit, net profit margin, markup percentage, and revenue needed for a target margin.
Future Value Calculator
Calculate the future value of a lump sum or regular investment with compound interest.
Present Value Calculator
Calculate the present value of a future lump sum or stream of payments using a discount rate.
Discount Calculator
Calculate the sale price, amount saved, and percentage off for any discount. Works for retail, coupons, and bulk pricing.
Savings Calculator
Calculate how much your savings will grow over time with regular contributions and compound interest.
Investment Calculator
Calculate the future value of an investment with one-time or recurring contributions, and see the effect of different return rates.
Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →