Break-Even Point Calculator
Find how many units you need to sell to cover your fixed costs, given your price and variable cost per unit.
The formula
Contribution margin per unit = Price − Variable cost per unit. Break-even units = Fixed costs ÷ Contribution margin per unit. Break-even revenue = Break-even units × Price.
Worked example
With fixed costs of 50,000, a selling price of 250, and a variable cost of 150 per unit, the contribution margin is 100 per unit. Break-even is 50,000 ÷ 100 = 500 units, or 1,25,000 in revenue.
Frequently asked questions
What counts as a 'fixed' vs 'variable' cost?
Fixed costs (rent, salaries, insurance) stay the same regardless of how many units you sell. Variable costs (materials, packaging, per-unit shipping) scale directly with each unit produced or sold.
What happens below the break-even point?
Selling fewer units than the break-even point means your contribution margin hasn't yet covered your fixed costs, so the business is operating at a loss for that period.