Break-even Calculator
Find the number of units and revenue you need to cover your costs.
- Break-even revenue
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- Contribution / unit
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What is the break-even point?
The break-even point is the level of sales at which total revenue exactly equals total cost — you make neither a profit nor a loss. Below it you lose money; above it every extra unit adds profit.
The formula
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit). The bracket
is your contribution margin — the amount each sale contributes toward fixed costs. Break-even
revenue = Break-even units × Price per unit.
How to use the Break-even Calculator
- Enter fixed costs. Type your total fixed costs, such as rent and salaries.
- Enter price per unit. Type the price you sell each unit for.
- Enter variable cost per unit. Type the cost that varies with each unit produced.
- Read your result. See the break-even units and revenue update instantly.
Frequently asked questions
What is contribution margin?
Contribution margin is the price per unit minus the variable cost per unit. It is the amount each sale contributes toward covering your fixed costs.
Why must the price exceed the variable cost?
If the price is not greater than the variable cost, every unit loses money and you can never break even, so the calculation is undefined.
What if I get a fractional number of units?
In practice you round up, because you must sell whole units to fully cover your fixed costs.
Does this calculator store my figures?
No. The calculation runs entirely in your browser; nothing you enter is sent to or stored on a server.