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Break-Even Point Calculator

Break-Even Calculator

Calculate break-even units, break-even revenue, contribution margin, and target sales volume in seconds. This free break-even calculator helps you understand how many units you need to sell to cover your costs.

Enter break-even details

Choose your costs and selling price to estimate your break-even point.

Fixed costs

Selling price per unit

Variable cost per unit

Target profit (optional) Add a target profit to estimate units needed beyond break-even.

Units sold (optional) Enter actual or planned units to estimate profit at that sales volume.

Tax rate on sale (optional %) Optional estimate for price including tax.

Break-Even Units

Estimated units needed to cover fixed and variable costs.

Break-Even Revenue

Contribution Margin

Contribution Margin Ratio

Profit at Units Sold

Break-even breakdown

Fixed costs $0

Selling price per unit $0

Variable cost per unit $0

Contribution margin per unit $0

Units for target profit 0

Revenue at target profit $0

Price composition per unit

Variable cost

Contribution margin

How this break-even calculator works

This calculator estimates the number of units you need to sell to cover your fixed costs and variable costs. Once you pass that point, each additional unit sold contributes to profit.

Break-even analysis is one of the most useful planning tools in business because it helps you understand pricing, cost structure, and the minimum sales volume needed to avoid losses.

What does break-even mean?

Break-even point: The sales level where profit is zero
Contribution margin: Selling price minus variable cost per unit
Contribution margin ratio: Contribution margin divided by selling price
Target profit units: Units needed to cover costs plus a desired profit

Common uses

Estimate the minimum sales needed to avoid losses
Set realistic pricing targets
Compare different cost structures
Plan for a target profit goal

Break-even formulas

The calculator uses these standard formulas:

Contribution Margin per Unit = Selling Price − Variable Cost Break-Even Units = Fixed Costs ÷ Contribution Margin per Unit Break-Even Revenue = Break-Even Units × Selling Price Contribution Margin Ratio = (Contribution Margin per Unit ÷ Selling Price) × 100 Units for Target Profit = (Fixed Costs + Target Profit) ÷ Contribution Margin per Unit Profit at Units Sold = (Units Sold × Contribution Margin per Unit) − Fixed Costs

Example

If fixed costs are $10,000, selling price is $50, and variable cost is $30, the contribution margin is $20 per unit. You would need to sell 500 units to break even.

Break-Even Calculator FAQ

What is the break-even point?

The break-even point is the number of units or amount of revenue needed so total income equals total costs. At that point, profit is zero.

What is contribution margin?

Contribution margin is the amount left from each sale after subtracting variable cost. It contributes toward covering fixed costs and then profit.

Can this calculator estimate target profit?

Yes. Enter a target profit and the calculator will estimate how many units you need to sell to cover costs and reach that goal.

What are fixed costs vs. variable costs?

Fixed costs stay the same regardless of sales volume, such as rent or salaries. Variable costs change with each unit sold, such as materials or shipping.

Can I use this for services as well as products?

Yes. You can use it for products, subscriptions, consulting, courses, or services as long as you know the fixed costs, selling price, and variable cost per unit.