Break-Even Calculator
A break-even calculator finds the sales volume at which total revenue equals total costs, using fixed costs divided by the contribution margin (price minus variable cost) per unit. The contribution margin, price minus variable cost per unit, is the amount each additional unit sold contributes toward covering fixed costs; once enough units are sold to cover fixed costs entirely, every unit after that becomes profit, which is the business meaning behind the single break-even number.
Educational estimate only. Results are not medical, legal, or financial advice. Confirm important decisions with a qualified professional.
How it works
- Enter your fixed costs for the period.
- Enter the price and variable cost per unit.
- Read the number of units and revenue needed to break even.
Formula break-even units = fixed costs / (price per unit − variable cost per unit)
Frequently asked questions
What counts as a fixed cost vs. a variable cost?
Fixed costs (rent, salaries, insurance) don’t change with sales volume; variable costs (materials, shipping, per-unit fees) scale with each unit sold.
What if my price is lower than my variable cost?
Then every sale loses money regardless of volume — there is no break-even point, and this calculator will not show a result.
What is "contribution margin"?
The amount each unit sold contributes toward covering fixed costs — price minus variable cost per unit.
Does this include taxes?
No — this is a simplified pre-tax break-even analysis.
Is this financial advice?
No. It is an educational business-planning estimate.