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Break-Even Calculator

Find how many units you must sell to cover fixed costs, and the break-even revenue.

Costs that don't change with sales, e.g. rent and salaries for the period.

Materials, packaging and other costs for each unit sold.

Result

Enter your values and select Calculate to see the result.

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How the Break-Even Calculator works

Each sale earns its price minus its variable cost — the contribution — toward fixed costs like rent and salaries. The break-even point is the number of sales whose contributions cover the fixed costs exactly; every sale after that is profit. Units are rounded up, because you can't sell part of a unit.

Formula

units = fixed costs ÷ (price − variable cost)

Break-even revenue = units × price, or fixed costs ÷ the contribution margin ratio.

Examples

Fixed costs 10,000; price 50; variable cost 30

10,000 ÷ 20 = 500 units, or 25,000 in revenue.

Fixed costs 1,000; price 7; variable cost 4

1,000 ÷ 3 = 333.33, so 334 units; break-even revenue is 2,333.33.

Frequently asked questions

What counts as a fixed cost?

Costs that don't change with how much you sell in the period: rent, salaries, insurance, software subscriptions.

What if the price is below the variable cost?

Then every sale loses money and there's no break-even point. The calculator says so instead of giving a number.

How can I lower the break-even point?

Raise the price, cut the variable cost per unit, or reduce fixed costs. The Profit Margin Calculator helps with pricing.

Profit Margin Calculator

Find profit margin and markup from cost and price, or the selling price for a target margin or markup.

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ROI Calculator

Calculate return on investment as a percentage, plus the annualized return over the years you held it.

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Unit Price Calculator

Compare products by price per unit to find the best value, with how much more the others cost.

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