Break-Even Calculator

Calculate the break-even point in units and revenue for your business.

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Formula

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Core Formula
Break-Even Units=Fixed CostsPrice per UnitVariable Cost per Unit\text{Break-Even Units} = \frac{\text{Fixed Costs}}{\text{Price per Unit} - \text{Variable Cost per Unit}}

How it works: Divide total fixed costs by the contribution margin (price minus variable cost per unit).

Worked Example

Fixed Costs: $10,000, Price per Unit: $50, Variable Cost: $30
1Step 1: Contribution margin = 50 - 30 = $20
2Step 2: Break-even units = 10,000 / 20 = 500 units
3Step 3: Break-even revenue = 500 × $50 = $25,000
Result: 500 units / $25,000 revenue

What Is Break-Even Analysis?

Break-even analysis determines the point at which total revenue equals total costs, meaning no profit or loss. It is a fundamental tool for business planning, pricing decisions, and financial forecasting. The break-even point can be expressed in units (how many items you need to sell) or in revenue (how much money you need to generate).

  • Break-Even Units = Fixed Costs / (Selling Price - Variable Cost per Unit)
  • The difference between selling price and variable cost is called the contribution margin
  • Lowering fixed costs or increasing the contribution margin reduces the break-even point
  • Break-even analysis assumes costs are linear and the selling price stays constant

Every business should know its break-even point. It answers the critical question: how much do I need to sell before I start making a profit?

You can also calculate changes using our Profit Margin Calculator, Pricing Calculator or Unit Economics Calculator.

Frequently Asked Questions

What is the break-even point?

The point where total revenue equals total costs.no profit, no loss.

What are fixed vs variable costs?

Fixed costs stay the same regardless of output (rent, salaries). Variable costs change with production volume (materials, shipping).

How can I lower my break-even point?

Reduce fixed costs, increase prices, or reduce variable costs per unit.

Can I embed this Break-Even Calculator on my website?

Yes. Click the "Embed" button at the top of this page to customize the size, colors, and theme, then copy the iframe code. Paste it into any HTML page, WordPress site, or CMS. It is completely free, requires no signup, and works on all devices. You can also visit our embed guide at calculory.com/services/embed-calculators for more details.

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