Break-Even Calculator
Find the break-even point in units and revenue from your fixed costs, selling price, and variable cost per unit.
Independently verified for accuracy
Calculator by Toolsloft ↗- Contribution margin
- 20
- Contribution margin ratio (%)
- 40
- Break-even units
- 500
- Break-even revenue
- 25000
This calculator finds how many units you have to sell to cover your fixed costs, the point where the business stops losing money and starts to profit. Enter your fixed costs, selling price, and the variable cost of each unit to get the break-even quantity, the revenue it represents, and your contribution margin. Use it when pricing a product or sizing the sales target a new line needs to clear.
How this is calculated
Contribution margin is price per unit minus variable cost per unit. Break-even units equal fixed costs divided by the contribution margin, and break-even revenue is those units multiplied by the selling price, the standard cost-volume-profit method.
How to use
- Enter your total fixed costs.
- Enter the selling price per unit.
- Enter the variable cost per unit to read the break-even units and revenue.
Examples
- $10,000 fixed, $50 price, $30 cost:
500 units, $25,000 revenue - $50,000 fixed, $120 price, $45 cost:
666.67 units, $80,000 revenue
FAQ
- What is the contribution margin?
- The selling price per unit minus the variable cost per unit. It is the amount each sale contributes toward covering fixed costs and, after that, profit.
- Why must the price exceed the variable cost?
- If each unit costs as much or more to make than it sells for, there is no margin to cover fixed costs, so a break-even point never exists.
- What does break-even revenue tell me?
- The sales dollars you need to fully cover fixed and variable costs. Below it you lose money, above it you turn a profit.