Break-Even Calculator
Find out how many units you need to sell to cover your costs. Enter fixed costs, variable cost per unit and selling price per unit to get your break-even point in units and revenue.
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Save โถHow to use the Break-Even Calculator
- 1Enter fixed costs (per period) in the form on the left.
- 2Fill in the remaining fields โ the result updates automatically as you type.
- 3Review the highlighted result and the supporting breakdown on the right.
- 4Use Copy, Share or Print to save or send your result.
Break-even analysis in plain terms
Each unit sold contributes (price โ variable cost) toward covering fixed costs; once contributions equal fixed costs, you break even. The formula: break-even units = fixed costs รท contribution margin per unit.
Beyond the break-even point, the entire contribution margin of each extra unit becomes profit. To plan for a target profit, add it to fixed costs in the formula: units = (fixed costs + target profit) รท contribution margin.
Frequently Asked Questions
โธWhat counts as a fixed vs. variable cost?
Fixed costs don't change with volume (rent, salaries, insurance). Variable costs scale per unit (materials, packaging, transaction fees).
โธHow can I lower my break-even point?
Three levers: reduce fixed costs, reduce variable cost per unit, or raise prices. Small price increases often have the biggest effect because they flow straight into contribution margin.