Break-Even Calculator
Learn how many units you must sell before you start making a profit.
Your numbers
Estimate for information only, not professional advice. Last reviewed .
How we calculate it
Break-even units = fixed costs ÷ (price − variable cost per unit). The denominator, called the contribution margin per unit, is the amount each sale contributes toward covering fixed costs.
The result is rounded up because you cannot sell part of a unit. Break-even revenue is the units multiplied by the price.
Assumptions and limits
- Fixed costs stay the same regardless of volume (rent, salaries, subscriptions). Variable costs change with each unit sold (materials, packaging, payment fees).
- The model assumes constant price and variable cost, which is a simplification.
Frequently asked questions
What is the break-even point?
It is the sales level at which total revenue equals total costs, so profit is exactly zero.
How can I lower my break-even point?
Reduce fixed costs, raise the price or reduce the variable cost per unit. Each change increases the contribution or shrinks what you must cover.
What if price is lower than variable cost?
You lose money on every sale and can never break even. The calculator asks you to adjust your inputs.
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- Markup CalculatorEnter your cost and the markup you want to add to get the selling price, profit per unit and the margin that markup produces.
- ROI CalculatorMeasure how much you gained or lost relative to what you put in.
- Hourly to Salary CalculatorEnter your hourly pay and schedule to see the equivalent annual salary, with an optional adjustment for unpaid time off.
Worked example (a fixed example using the starting numbers, it does not change as you type)
Inputs: Fixed costs ($) = 12000; Price per unit ($) = 45; Variable cost per unit ($) = 27.
- Break-even units 667
- Break-even revenue $30,015.00
- Contribution per unit $18.00
- Contribution margin 40%
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