Break-Even Calculator
Units and revenue needed to cover costs
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About this calculator
The break-even point is where revenue exactly equals total cost. Enter your fixed costs, selling price and variable cost per unit to see how many units, and how much revenue, you need before you start making a profit.
The formula
Break-even units = fixed costs ÷ (price − variable cost per unit)
Worked exampleFixed costs 5,000; price 25; variable cost 15 → 5,000 ÷ 10 = 500 units, or 12,500 in revenue.
Frequently asked questions
What is contribution margin?
It is the selling price minus the variable cost per unit. It is how much each sale contributes toward fixed costs.
What if price is lower than variable cost?
You lose money on every sale and can never break even. Raise the price or cut variable costs.
Does it include tax?
No. Enter figures before tax unless you want tax included in both price and cost.
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