Break-Even Calculator
Find exactly how many units you need to sell to cover your costs.
Break-Even Point Calculator
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How Break-Even Analysis Works
The break-even point is the number of units you must sell for total revenue to exactly equal total costs — the point where you stop losing money and start making a profit. It's calculated by dividing your fixed costs by the contribution margin (price minus variable cost per unit).
Formula
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit)
Frequently Asked Questions
What are fixed vs variable costs?
Fixed costs stay the same regardless of sales volume (rent, salaries, insurance), while variable costs scale with each unit produced or sold (materials, packaging, shipping).
What does contribution margin mean?
It's the amount each unit sold contributes toward covering fixed costs after variable costs are paid, calculated as price minus variable cost per unit.
What if my variable cost is higher than my price?
Then you cannot break even at any volume, you're losing money on every unit sold and need to raise price or cut variable costs.