Break-Even Calculator

Calculate your break-even point in units and revenue. Input fixed costs, variable costs, and selling price.

Last updated: June 1, 2026

Fixed Costs ($)

Variable Cost/Unit ($)

Selling Price/Unit ($)

Breakeven Units

2,000

Breakeven Revenue

$100,000

Margin/Unit

$25

Contribution Margin

50.0%

What is Break-Even Calculator?

A break-even calculator determines exactly how many units you need to sell (or how much revenue you need) to cover all your costs — the point where total revenue equals total expenses, and you start generating profit. Understanding your break-even point is crucial for pricing decisions, sales forecasting, startup planning, and evaluating whether a business idea is viable. It separates fixed costs (rent, salaries, insurance — paid regardless of sales) from variable costs (materials, shipping — paid per unit sold).

How It Works

Enter your fixed costs (monthly or annual), variable cost per unit, and selling price per unit. The tool calculates: break-even units = fixed costs / (price - variable cost per unit). The denominator (price minus variable cost) is your contribution margin — how much each sale contributes toward covering fixed costs. It also shows break-even revenue, margin of safety at projected volumes, and how changes in price or costs shift the break-even point. A visual chart shows profit/loss at different volume levels.

Common Use Cases

•Evaluating new product viability by determining if realistic sales volumes exceed break-even
•Setting minimum pricing that covers all costs and achieves profitability at target volumes
•Planning startup financials by calculating the revenue needed before the business becomes profitable
•Analyzing the impact of fixed cost changes (new hire, bigger office) on required sales volume
•Making pricing decisions by understanding how price changes affect the units needed to break even
•Presenting financial projections to investors showing the path to profitability with volume targets