Break-Even Calculator
Find your break-even point — enter your fixed costs, price per unit and variable cost per unit to see how many units and how much revenue you need to cover your costs.
Finding your break-even point
The break-even point is where total revenue exactly covers total costs — no profit, no loss. Each unit you sell contributes its price minus its variable cost toward your fixed costs; that gap is the contribution margin. Divide your fixed costs by the contribution margin per unit and you get the number of units you must sell to break even. The calculator also converts that into the revenue figure so you have both targets.
Using it to price and plan
A higher price or lower variable cost raises the contribution margin and lowers the units you need. If the price is at or below the variable cost, there is no break-even — every sale loses money. Pair this with the markup calculator to set a price, and the ROI calculator to judge the return once you are past break-even.
Frequently asked questions
How do I calculate the break-even point?
Divide your fixed costs by the contribution margin per unit (price minus variable cost). For example, $10,000 fixed costs with a $25 price and $15 variable cost gives a $10 margin, so 10,000 ÷ 10 = 1,000 units to break even. Enter your figures above for the units and revenue.
What is contribution margin?
Contribution margin is what each sale contributes toward fixed costs after covering its own variable cost — the price minus the variable cost per unit. The higher it is, the fewer units you need to break even. The calculator shows it alongside the break-even point.
What if I can’t reach break-even?
If the price per unit is at or below the variable cost, the contribution margin is zero or negative and you can never break even — every sale loses money. You would need to raise the price or cut the variable cost. The calculator flags this case.