Break-Even Calculator
Find out how many units or how much revenue you need to cover your costs.
Breakdown
Profit / Loss at Various Unit Counts
| Units Sold | Revenue | Total Cost | Profit / Loss |
|---|
Can't find what you need?
Request a ToolHow to Use the Break-Even Calculator
This calculator helps you determine the exact point where your revenue covers all costs. Follow these steps:
- Enter your fixed costs. These are expenses that stay the same regardless of how many units you sell: rent, salaries, insurance, loan payments, and similar overhead. Enter the total for the period you are analyzing (usually monthly or annually).
- Enter your price per unit. This is what you charge customers for each unit of your product or service.
- Enter your variable cost per unit. These are costs that change with each unit produced: materials, direct labor, shipping, and packaging.
Results update instantly as you type. The calculator shows the number of units you must sell to break even, the total revenue at that point, and the contribution margin per unit. Below the result, a table shows profit or loss at 50%, 100%, 150%, and 200% of the break-even volume so you can plan for different scenarios. Use the Share button to send a pre-filled link, or Copy to grab the result.
About Break-Even Analysis
Break-even analysis is a fundamental business calculation that tells you when your total revenue will equal your total costs. Below that point, you operate at a loss. Above it, you earn a profit. The formula divides fixed costs by the contribution margin (price minus variable cost per unit).
Business owners use break-even analysis to set pricing, evaluate new product ideas, and determine minimum sales targets. It is especially useful when launching a new product or entering a new market. The contribution margin ratio shows what percentage of each dollar of revenue goes toward covering fixed costs and generating profit. All calculations run entirely in your browser. No data is sent anywhere.
Frequently Asked Questions
What is a break-even point?
The break-even point is the number of units you must sell (or the amount of revenue you must earn) for total revenue to equal total costs. At this point you have zero profit and zero loss. Selling more than the break-even quantity means you earn a profit on every additional unit sold.
How do I calculate break-even?
Divide your total fixed costs by the contribution margin per unit. The contribution margin is the selling price minus the variable cost per unit. For example, if fixed costs are $50,000, the price is $100, and the variable cost is $60, the contribution margin is $40 and the break-even point is 1,250 units ($50,000 / $40).
What is contribution margin?
Contribution margin is the difference between the selling price and the variable cost per unit. It represents the portion of each sale that goes toward covering fixed costs and generating profit. A higher contribution margin means you need to sell fewer units to break even.
How can I lower my break-even point?
There are three ways to lower your break-even point: reduce fixed costs (negotiate rent, cut overhead), increase your selling price, or reduce variable costs per unit (find cheaper suppliers, improve production efficiency). Any combination of these moves will reduce the number of units you need to sell to cover costs.