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Break-even Calculator
Calculate how many units you need to sell, and the revenue required, to cover your fixed costs.
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Break-even formulas
Contribution per unit = selling price per unit − variable cost per unit. Break-even units = fixed costs ÷ contribution per unit, rounded up to a whole unit. Break-even revenue is the rounded unit count multiplied by selling price.
Example: with $600 fixed costs, a $50 selling price and $30 variable cost, contribution is $20 per unit. The calculator rounds $600 ÷ $20 to 30 units, or $1,500 in revenue.
Assumptions behind the estimate
The calculation assumes one product at a consistent price and variable cost, with fixed costs measured for the same period as the sales plan. A contribution of zero or less cannot cover fixed costs through additional unit sales.
Changes in product mix, discounts, capacity, taxes or step costs can change the real break-even point. Compare these results with the actual cost structure before making a pricing or production decision.
Related calculations: Profit Margin & Markup Calculator · Quote Margin Calculator
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The tool is intentionally simple. Open an answer only when you need it.
How does this tool work?
- Enter fixed costs for the period.
- Enter price and variable cost per unit.
- See the break-even units, contribution margin and required revenue.
What counts as a fixed cost?
Fixed costs are costs that do not change directly with each unit sold, such as rent or a fixed software subscription.
What if variable cost is higher than price?
There is no positive break-even point when the contribution per unit is zero or negative.
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