Break-even Calculator
Calculate the break-even point in units and revenue from your fixed costs, price, and variable cost per unit, instantly in your browser.
How to use the Break-even Calculator
- Enter your total fixed costs for the period, such as rent, salaries and insurance.
- Enter the selling price of one unit.
- Enter the variable cost of producing one unit, such as materials and shipping.
- Click Run to see the break-even point in units and the revenue needed to reach it.
How the Break-even Calculator works
Each unit you sell earns a contribution margin: the selling price minus the variable cost of that unit. That margin goes towards paying your fixed costs. The break-even point is reached when the combined contribution from all units sold exactly covers the fixed costs:
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit)
Break-even revenue is that number of units multiplied by the price. Every unit sold beyond the break-even point is profit equal to its contribution margin. If the price is at or below the variable cost, the business can never break even, because each sale loses money.
Frequently asked questions
- Is this break-even calculator free?
- Yes. Calculate your break-even point at no cost, with no account required.
- What is the break-even point?
- The break-even point is the number of units you need to sell for total revenue to equal total costs, resulting in zero profit or loss.
- How is break-even calculated?
- Break-even units = Fixed costs / (Price per unit - Variable cost per unit).