Break-even calculator
Enter your fixed costs, the selling price and the variable cost of one unit. The calculator shows how many units you must sell, and how much revenue that is, before you start making a profit.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter your fixed costs for the period: costs that do not change with sales.
- Enter the selling price and the variable cost of one unit (materials, packaging, fees per sale).
- Optionally enter a profit you want to reach.
- Contribution margin = price − variable cost
- Break-even units = (fixed costs + target profit) ÷ contribution margin
- Break-even revenue = units × price
Worked example
Fixed costs 5,000, price 12, variable cost 7.50. Margin = 4.50 (37.5% of the price). Units = 5,000 ÷ 4.50 = 1,111.11, so 1,112 whole units; revenue = 1,111.11 × 12 = 13,333.33.
Limits
- The model assumes constant price and variable cost per unit and that costs split cleanly into fixed and variable.
- Costs that jump at a certain volume (a second shop, extra staff) need a new calculation above that volume.
Frequently asked questions
How do you calculate the break-even point?
Break-even units = fixed costs ÷ (price − variable cost per unit). The price minus variable cost is the contribution margin: what each sale adds toward covering fixed costs. With fixed costs of 10,000, a price of 25 and a variable cost of 15, the margin is 10, so you need 1,000 units.
How do I find break-even revenue?
Multiply the unrounded break-even units by the price, or divide fixed costs by the contribution margin ratio (margin ÷ price). In the example above that is 1,000 × 25 = 25,000, or 10,000 ÷ 0.40.
How do I plan for a profit?
Enter a target profit. The formula becomes (fixed costs + target profit) ÷ margin. With fixed costs 5,000, price 12, variable cost 7.50 and a 2,000 target, you need 1,556 units.
Why are the units rounded up?
You cannot sell part of a unit, and 1,111.11 units would still leave you slightly short of the costs, so the calculator rounds up to 1,112. Revenue is shown for the unrounded figure.