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.
Another example
Fixed costs of 9,000, a price of 40 and a variable cost of 25 give a contribution margin of 15, so break-even is 9,000 ÷ 15 = 600 units and 24,000 in revenue.
When the answer isn't a whole number
With fixed costs of 10,000, a price of 30 and a variable cost of 12.50, the contribution margin is 17.50 and the exact break-even is 571.43 units. The calculator rounds the unit count up to 572, since you can't sell part of a unit, but the revenue shown, 17,142.86, is based on the unrounded 571.43 units.
Planning for a target profit
To find the sales needed for a profit target, add the target to your fixed costs and enter the total. Adding a 3,500 target to the 10,000 above gives fixed costs of 13,500, which needs 772 units and 23,142.86 in revenue. If you expect to sell 800 units against a break-even of 600, your margin of safety is (800 − 600) ÷ 800 = 25% of sales.
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.