BusCalcTools

Break-Even Calculator — Find Your Break-Even Point Instantly

Find the number of units and total revenue you need to cover all costs — the point where you stop losing money and start making profit.

Inputs

$

Rent, salaries, insurance — costs that don't change with output

$

Materials, packaging, commission — costs per unit sold

$
$

Extends to: units needed to hit a profit target

Break-Even Units

Healthy

334

You need to sell 334 units to cover all costs.

Contribution margin per unit: $15.00

Break-Even Revenue

$8,350.00

Total revenue needed to cover fixed + variable costs

Break-even chart

How it works

Enter your fixed costs for the period (rent, salaries, insurance), your variable cost per unit (materials, packaging), and your selling price per unit. The calculator divides fixed costs by the contribution margin (selling price minus variable cost) to find how many units you must sell to cover everything. The chart shows revenue and total cost lines crossing at the break-even point.

See the formula
Break-Even Units = Fixed Costs / (Selling Price − Variable Cost Per Unit)

Contribution Margin = Selling Price − Variable Cost Per Unit

Break-Even Revenue = Break-Even Units × Selling Price

Example: Fixed = $5,000 | Variable = $10 | Selling Price = $25
  Contribution Margin = $25 − $10 = $15
  Break-Even Units    = $5,000 / $15 = 334 units
  Break-Even Revenue  = 334 × $25 = $8,350

Frequently Asked Questions

What is the break-even point?
The break-even point is the level of sales at which your total revenue exactly equals your total costs — you are making neither a profit nor a loss. Any sales above the break-even point generate profit. Any sales below it result in a loss.
How do I calculate break-even point in units?
Break-even units = Fixed Costs / (Selling Price per unit − Variable Cost per unit). The denominator is called the contribution margin — the profit each unit contributes toward covering your fixed costs.
What are fixed costs vs variable costs?
Fixed costs stay the same regardless of how many units you sell — rent, insurance, salaries. Variable costs change with each unit produced or sold — raw materials, packaging, sales commission. The distinction is critical for accurate break-even analysis.
How do I lower my break-even point?
You can lower your break-even point by: (1) increasing your selling price, (2) reducing variable costs per unit, or (3) reducing fixed overhead costs. Increasing price is usually the fastest lever, but must be balanced against demand elasticity.
What is the break-even formula?
Break-Even Units = Fixed Costs ÷ Contribution Margin, where Contribution Margin = Selling Price − Variable Cost Per Unit. In revenue terms: Break-Even Revenue = Break-Even Units × Selling Price.

Glossary

Contribution Margin
Selling price minus variable cost per unit — the profit each sale contributes toward covering fixed costs.
Fixed Costs
Costs that stay the same regardless of how many units you sell.
Variable Costs
Costs that scale directly with each unit produced or sold.

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For information only. This calculator does not constitute financial, accounting, or tax advice. Consult a qualified professional before making business decisions.