Break Even Calculator
Enter your costs and price to see the break-even point.
Work out how many units you need to sell before a product starts making a profit. Enter your total fixed costs, the selling price per unit, and the variable cost per unit, and this calculator shows the break-even point in both units and revenue. Everything runs in your browser, so no figures leave your device.
How to use
- Enter your total fixed costs, the overheads you pay regardless of how many units you sell.
- Enter the selling price per unit.
- Enter the variable cost per unit, the cost tied to producing each unit.
- Read off the break-even units and break-even revenue in the results panel.
- Use Copy result to save the figures, or Reset to start a new scenario.
Examples
- Fixed costs 10000, price 50, variable cost 30. Contribution margin is 20 per unit, so break-even is 500 units and 25000 in revenue.
- Fixed costs 1005, price 30, variable cost 20. Margin is 10, so 100.5 units are needed, rounded up to 101 units, with break-even revenue of 3015.
- Fixed costs 10000, price 20, variable cost 30. The price is below the variable cost, so there is no break-even point and the tool shows a clear message.
FAQs
- What is the break-even point?
- It is the level of sales where total revenue equals total cost, so you make neither a profit nor a loss. Below it you lose money, above it you start to profit.
- How is break-even calculated?
- Break-even units equal fixed costs divided by the contribution margin per unit, where the margin is selling price minus variable cost. Break-even revenue is that unit figure multiplied by the selling price.
- Why are break-even units rounded up?
- You cannot sell a fraction of a unit and still cover your costs, so the tool rounds up to the next whole unit to guarantee you reach or pass the break-even point.
- What happens if the price is at or below the variable cost?
- There is no break-even point. Every unit sold loses money on the variable cost alone, so the calculator shows a message instead of an impossible result.
- What counts as a fixed cost versus a variable cost?
- Fixed costs stay the same no matter how much you produce, such as rent and salaries. Variable costs rise with each unit, such as materials and packaging.
- Does this work with any currency?
- Yes. The calculator is currency agnostic. Enter the numbers in whatever currency you use and the results come back in the same units.
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