Break-Even Calculator
Calculate the units or revenue needed to cover fixed costs and reach break-even.
What is Break-Even Calculator?
The break-even calculator tells you how many units to sell to cover fixed costs. Above that, you're profitable.
Formula
Break-even units = fixed costs ÷ (price − variable cost). Contribution margin = price − variable cost.
Worked example
Fixed $5k, price $50, variable $30: contribution $20/unit. Break-even = 5000/20 = 250 units, or $12,500 revenue.
How to use this calculator
- Enter fixed costs, unit price, and variable cost per unit.
- Break-even point in units and revenue appears.
Frequently asked questions
What are fixed vs variable costs?
Fixed costs don't change with volume (rent, salaries). Variable costs scale with units (materials, packaging, sales commissions).
What's contribution margin?
Price minus variable cost. Each unit sold contributes that amount to fixed costs (then to profit). Higher contribution = lower break-even.
How do I lower break-even?
Three ways: lower fixed costs, raise price, or lower variable cost. Each shifts the math.
Should I include desired profit?
Standard break-even covers only fixed costs (zero profit). To target a specific profit, add it to fixed costs: required units = (fixed + target profit) / contribution.