Break-Even Calculator
Calculate how many units you must sell to cover all your costs and start making a profit.
25,000
20
Formula
Examples
| Input | Result |
|---|---|
| Fixed $10,000, price $50, variable $30 | Break-even = 500 units, revenue = $25,000 |
About this calculator
The break-even point is the sales volume at which total revenue exactly covers total costs, leaving zero profit and zero loss. Each unit sold contributes its price minus its variable cost toward covering the fixed costs; this difference is the contribution margin per unit. Dividing fixed costs by the contribution margin gives the number of units needed to break even.
Break-even analysis helps you set prices, plan production and assess whether a product is viable. If the price per unit does not exceed the variable cost per unit, the contribution margin is zero or negative and no volume can ever cover fixed costs, so the calculator warns you when that happens.
Frequently asked questions
It is the price per unit minus the variable cost per unit, i.e. the amount each sale contributes toward fixed costs and profit. Higher contribution margins mean fewer units are needed to break even.
If price is at or below variable cost, every sale fails to cover its own costs, so increasing volume only deepens losses and there is no break-even point.
Break-even revenue is the total sales income at the break-even point. It tells you the minimum turnover required before the business becomes profitable.
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