Break-Even Point Calculator
The break-even point is the number of units a business must sell to cover all its costs — below it, the business loses money; above it, it profits. It is a foundational number for pricing, launching products and setting sales targets.
Enter your fixed costs (costs that do not change with volume), the selling price per unit, and the variable cost per unit. The calculator returns the units and revenue needed to break even.
Use it before launching a product or quoting a price, so you know the minimum sales volume that turns the lights on before profit begins.
Enter your values to see the result.
How this is calculated
The break-even point is the number of units a business must sell to cover all its costs. Below it, the business loses money; above it, each extra unit adds profit. This calculator divides fixed costs by the contribution margin per unit — the selling price minus the variable cost per unit — to find the units needed: units = fixed costs ÷ (price − variable cost). Break-even revenue is those units multiplied by the selling price.
Fixed costs stay the same regardless of volume (rent, salaries, insurance). Variable costs rise with each unit produced (materials, packaging, per-unit shipping). The contribution margin is what each unit contributes toward covering fixed costs and then earning profit.
The model assumes a single product with a constant price and constant variable cost per unit. It does not handle stepped fixed costs (rent jumping at a capacity threshold), mixed product lines with different margins, price discounts at higher volumes, or demand — knowing your break-even tells you the target, not whether the market will buy that many.
Worked example
Fixed costs $20,000/month, selling price $50/unit, variable cost $20/unit.
- 1Contribution margin per unit = 50 − 20 = $30.
- 2Break-even units = 20,000 ÷ 30 ≈ 667 units per month.
- 3Break-even revenue = 667 × 50 = $33,350 per month.
Frequently asked questions
- How is the break-even point calculated?
- Units = Fixed Costs ÷ (Price − Variable Cost per unit). The denominator (price minus variable cost) is the contribution margin each unit brings.
- What are fixed vs variable costs?
- Fixed costs stay the same regardless of volume (rent, salaries). Variable costs rise with each unit produced (materials, packaging, per-unit shipping).
- How can I lower my break-even point?
- Raise the price, cut variable costs, or reduce fixed costs. Any of these increases the contribution margin and lowers the units needed.
- How is the break-even point calculated?
- Units = fixed costs ÷ (price − variable cost per unit). The denominator is the contribution margin each unit brings. Once fixed costs are covered, every additional unit sold adds its full contribution margin as profit.
- How can I lower my break-even point?
- Raise the price, cut variable costs, or reduce fixed costs. Any of these increases the contribution margin or shrinks the fixed-cost mountain, lowering the units you must sell to stop losing money.
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Method: fixed costs ÷ contribution margin per unit. No external data source. Last updated: September 2026.
These results are indicative estimates for planning only and do not constitute financial advice. Actual loan terms, tax rules, investment returns and product conditions vary by country, provider and your personal circumstances. Always confirm figures with your bank, tax authority or a qualified financial adviser before making decisions.