Calculate break-even units, break-even revenue, contribution margin, profit, margin of safety, and sales needed for a target profit. Use this calculator to find how many units you need to sell before your business starts making money.
Break-even units:
Enter fixed costs, selling price, and variable cost per unit to calculate the number of units needed to break even.
Break-even revenue:
Calculate the sales revenue needed to cover total costs.
Target profit:
Enter a target profit to calculate how many units and how much revenue are needed to reach that goal.
Profit at current sales:
Enter current or expected units sold to calculate profit or loss.
A break even calculator helps with pricing, sales planning, product launches, budgeting, production volume, and profit forecasting.
It can show whether your current sales volume is enough to cover costs and how many more units are needed to reach profitability.
Your result shows break-even units, break-even revenue, contribution margin, contribution margin ratio, current profit or loss, target profit units, and margin of safety. If current units are above break-even units, the estimate shows profit. If current units are below break-even units, the estimate shows a loss.
Break even is the point where revenue equals total costs, meaning profit is zero.
Divide fixed costs by contribution margin per unit. Contribution margin per unit is selling price minus variable cost per unit.
Contribution margin is the amount left from each sale after variable costs. It helps cover fixed costs and then contributes to profit.
Break-even point helps you understand the sales volume needed before a business, product, or service becomes profitable.