Break-Even Calculator
Calculate break-even units, revenue, and profit/loss at any sales volume from fixed and variable costs
Enter fixed costs, variable cost per unit, and selling price to calculate the break-even point.
What is a Break-Even Calculator?
A break-even calculator determines how many units you need to sell — or how much revenue you need to generate — before your business covers all its costs and starts making a profit. It separates costs into fixed costs (rent, salaries, equipment) and variable costs (materials, shipping per unit). The break-even point is where total revenue equals total costs, resulting in zero profit or loss. Understanding this threshold is essential for pricing, budgeting, and business planning.
How to Use the Break-Even Calculator
- Enter total fixed costs (costs that don't change with volume)
- Enter variable cost per unit (costs that increase with each unit sold)
- Enter your selling price per unit
- Optionally enter a target sales volume to see projected profit or loss
- View break-even units, revenue, and a profit/loss table by volume
Features
- Break-even point in units and total revenue
- Contribution margin per unit and contribution margin ratio
- Profit/loss at a custom sales volume target
- Volume table showing profit at 0×, 0.5×, 1×, 1.5×, 2×, and 3× break-even
- Instant reactive calculation — no submit button needed
Frequently Asked Questions
What is contribution margin?
Contribution margin is the selling price minus variable cost per unit. It represents how much each unit sold contributes to covering fixed costs and then generating profit. For example, if you sell at $50 with $20 variable cost, your contribution margin is $30 per unit.
What are examples of fixed vs. variable costs?
Fixed costs remain constant regardless of production volume: rent, salaries, insurance, software subscriptions. Variable costs change with each unit produced or sold: raw materials, packaging, shipping, sales commissions, and payment processing fees.
What if my contribution margin is negative?
A negative contribution margin means each unit sold actually loses money before even accounting for fixed costs. This is unsustainable — you need to either raise your selling price or reduce your variable costs per unit to reach a break-even point.