Break-Even Calculator

Calculate your break-even point in units and revenue instantly. Enter your fixed costs, variable cost per unit, and selling price to find out how many units you need to sell to cover all expenses.

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Rent, salaries, insurance, etc.

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Materials, shipping, per-unit labor

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Price you charge per unit

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Instant Break-Even Analysis

Enter your fixed costs, variable costs, and selling price to instantly see how many units you need to sell to break even.

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Target Profit Planning

Set an optional target profit to find out exactly how many units you need to sell to reach your revenue goals beyond break-even.

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100% Private

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Frequently Asked Questions

What is the break-even point?
The break-even point is the number of units (or total revenue) at which your total revenue exactly equals your total costs. At break-even, your profit is zero. Any sales beyond this point generate profit, while selling fewer units results in a loss.
How is the break-even point calculated?
Break-Even Units = Fixed Costs / (Selling Price - Variable Cost per Unit). The difference between selling price and variable cost is called the contribution margin. For example, if fixed costs are $10,000, selling price is $50, and variable cost is $25, the break-even point is 10,000 / (50 - 25) = 400 units.
What is the contribution margin?
The contribution margin is the selling price minus the variable cost per unit. It shows how much each unit sold contributes toward covering fixed costs and generating profit. The contribution margin ratio is this value divided by the selling price, expressed as a percentage. A higher ratio means you reach break-even faster.
What are fixed costs vs variable costs?
Fixed costs remain the same regardless of production volume. Examples include rent, insurance, salaries, and equipment leases. Variable costs change proportionally with the number of units produced, such as raw materials, packaging, shipping, and per-unit labor costs. Understanding both is essential for accurate break-even analysis.
Can I use this for service businesses?
Yes. For service businesses, treat each job or billable hour as a "unit." Your selling price is your hourly rate or project fee. Variable costs include per-job expenses like subcontractors, materials, or travel. Fixed costs cover overhead like office space, software subscriptions, and administrative staff. The calculator tells you how many jobs or hours you need to cover all costs.