Break-Even Calculator
Find the exact number of units you must sell and the revenue required to cover all fixed and variable costs.
Results
What is it?
The break-even point is the sales volume at which total revenue exactly equals total costs — producing neither profit nor loss. Every unit sold above the break-even point contributes pure profit. The contribution margin per unit (selling price minus variable cost) is the key driver: a higher contribution margin means you reach break-even faster.
How to use
1. Enter your total fixed costs (the same regardless of sales volume). 2. Enter the variable cost per unit (increases with each unit sold). 3. Enter your selling price per unit. The calculator computes the contribution margin, break-even unit count, and break-even revenue.
Example scenario
A startup has $10,000 in monthly fixed costs. Each product costs $30 to produce and sells for $50. Contribution margin = $20 per unit. Break-even = $10,000 / $20 = 500 units/month, or $25,000 in revenue. Any sales above 500 units generate profit at $20 each.
Pro tip
Calculate a "safety margin" — the percentage by which current sales exceed break-even. If you sell 700 units against a break-even of 500, your safety margin is 40%. A low safety margin signals high financial risk. Use break-even analysis when evaluating price changes, new product launches, or cost-cutting initiatives.