Business & Money

Break-Even Calculator

Find the sales volume required to cover your fixed costs. Enter your fixed costs, selling price per unit and variable cost per unit.

Fixed costs ($)Selling price per unit ($)Variable cost per unit ($)

Enter your numbers

Break-even occurs when total revenue equals total costs.

How break-even is calculated

Your contribution margin per unit is the selling price minus the variable cost per unit. Break-even units equal fixed costs divided by that contribution margin. Break-even revenue is the required units multiplied by the selling price.

Example

If fixed costs are $10,000, the selling price is $50 and variable cost is $30, each sale contributes $20 toward fixed costs. The business breaks even at 500 units, or $25,000 in sales revenue.

Why this matters

Break-even analysis helps evaluate pricing, cost reductions, sales targets and whether a new product or service has enough margin to support its overhead. Run multiple scenarios before making a commitment.

Related business calculators

Profit Margin Calculator helps compare revenue and cost after you know your sales volume. Use the ROI Calculator to measure return after you estimate the investment required, or the Percentage Calculator for growth and change analysis.

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