Break-Even Calculator

Find how many units you must sell to cover fixed costs, and the revenue needed to break even.

How do you calculate the break-even point?

The break-even point is where revenue equals total costs. Break-even units = fixed costs ÷ (price per unit − variable cost per unit); everything sold above that point is profit.

Inputs

Fixed costs — rent, salaries, software: costs that do not change with sales.
Price per unit — what each customer pays.
Variable cost per unit — materials, shipping, payment fees per sale.

Example

Fixed costs 10,000, price 50, variable cost 30: each sale contributes 20, so you need 500 sales (25,000 revenue) to break even.

To improve it, raise the price, lower variable costs or reduce fixed costs. Check unit profitability with the Profit Margin Calculator.

Frequently asked questions

What is contribution margin?

Price minus variable cost per unit — what each sale contributes to covering fixed costs.

Why does it say I can never break even?

Your variable cost is equal to or higher than the price, so each sale adds no contribution.

Is the result rounded?

Units are rounded up, because you cannot sell part of a unit.