Break-even Calculator

Estimate how many units or how much revenue you need to cover fixed and variable costs.

Business Direct route, no hidden menu

Result

Break-even units

Break-even revenue

$0.00

Contribution margin/unit

$0.00

How It Works

Break-even estimates how many units you must sell before revenue covers fixed costs and variable costs. The calculator subtracts variable cost per unit from selling price to find contribution margin, then divides fixed costs by that contribution.

Example

If fixed costs are $2,000, selling price is $50, and variable cost is $30, each unit contributes $20. The break-even point is 100 units.

Break-even planning examples

Estimate launch volume needed for a new product.
Check whether a price cut requires too many extra sales.
Plan ad budget against expected contribution margin.
Compare product ideas before buying inventory.

Limitations of the estimate

It assumes selling price and cost stay constant.
It does not predict demand.
It may not include taxes, refunds, or payment delays.
Real businesses should also model cash flow and inventory risk.

Frequently Asked Questions

What is break-even point?

It is the sales level where total revenue equals total costs. At break-even, profit is approximately zero.

What are fixed costs?

Fixed costs are costs that do not change directly with each unit sold, such as rent, software subscriptions, salaries, or equipment.

What are variable costs?

Variable costs change with each unit sold, such as product cost, packaging, payment fees, shipping, or commissions.

What if contribution margin is zero or negative?

If selling price is not higher than variable cost, the product cannot break even through volume alone.