Break-Even Calculator
Calculate break-even units and revenue from fixed costs, variable cost per unit, and price. Includes contribution margin and target profit.
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What is Break-Even Calculator?
The Break-Even Calculator is a free online tool that finds the exact point where your business stops losing money. Enter your fixed costs, selling price per unit, and variable cost per unit, and it instantly computes break-even units, break-even revenue, contribution margin per unit, and the contribution margin ratio. It also solves for the sales volume needed to hit any target profit and shows a profit scenario table around the break-even point — essential for pricing decisions, business plans, and investor pitches.
Key Benefits
- Instantly find break-even units and revenue without spreadsheets
- See contribution margin per unit and ratio to understand unit economics
- Solve for units and revenue needed to reach any target profit
- Profit scenario table shows how losses shrink and profits grow around break-even
- Real-time calculation with locale-aware number formatting
- 100% client-side — no sign-up, no data leaves your browser
Common Use Cases
- •Founders validating pricing before launch or pitching investors
- •Product managers setting prices for new products or features
- •E-commerce sellers figuring out minimum sales volume to cover costs
- •Students and analysts learning cost-volume-profit (CVP) analysis
- •Freelancers and agencies pricing services to cover overhead
How to Use the Break-Even Calculator
- Enter your fixed costs: Type the total fixed costs for the period — rent, salaries, software, insurance: everything you pay regardless of sales volume.
- Add price and variable cost per unit: Enter your selling price per unit and the variable cost to produce or deliver each unit (materials, packaging, payment fees, shipping).
- Read the break-even results: Break-even units, break-even revenue, contribution margin per unit, and the contribution margin ratio update instantly as you type.
- Explore scenarios and copy: Optionally set a target profit to see the units needed to reach it, check the profit scenario table, then copy the summary.
Key Features
- Break-even units and revenue computed live as you type — no buttons needed.
- Contribution margin per unit and contribution margin ratio shown alongside results.
- Target-profit solver: enter a desired profit and get the units and revenue required.
- Profit scenario table at 50% to 150% of break-even volume.
- One-click copy of a clean break-even summary with locale-aware formatting.
Frequently Asked Questions
What is the break-even point?
The break-even point is the sales volume at which total revenue equals total costs — you are neither making a profit nor a loss. It is found by dividing fixed costs by the contribution margin per unit (selling price minus variable cost per unit). Below it you lose money; above it every additional unit sold contributes pure margin.
How do I calculate break-even units?
Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit). For example, with $10,000 fixed costs, a $25 price, and $10 variable cost per unit: $10,000 / ($25 - $10) = 667 units to break even.
What is contribution margin?
Contribution margin per unit is what remains from each sale after paying the variable cost of that unit: Price - Variable Cost. That amount "contributes" toward covering fixed costs, and once fixed costs are covered it becomes profit. The contribution margin ratio expresses the same idea as a percentage of the selling price.
How do I calculate units needed for a target profit?
Units = (Fixed Costs + Target Profit) / Contribution Margin per Unit. Treating the target profit as an extra fixed cost is the standard approach. For example, $10,000 fixed costs plus a $5,000 target profit at a $15 contribution margin requires 1,000 units.