Break-Even Point Calculator
Find how many units you need to sell to cover fixed costs.
How break-even point works
The break-even point is the number of units you must sell so that total revenue exactly covers total costs — the point where a business (or product line) stops losing money and starts making a profit on each additional sale.
Enter your fixed costs (rent, salaries, insurance — costs that don't change with sales volume), the price per unit, and the variable cost per unit (materials, per-unit labor). The calculator returns the break-even point in units and revenue.
The gap between price and variable cost is your contribution margin — how much each sale contributes toward covering fixed costs before any profit begins.
The formula
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit)
Subtract the variable cost per unit from the price per unit to get the contribution margin, then divide fixed costs by that margin. Multiply by price for break-even revenue.
Worked example
$10,000 fixed costs, $50 price, $30 variable cost per unit
Contribution margin = $50 − $30 = $20. Break-even units = $10,000 ÷ $20 = 500 units, or $25,000 in revenue.
Frequently asked questions
What if variable cost is higher than price?
Then every unit sold loses money — there is no break-even point at that pricing, no matter how many units you sell. Price above variable cost, or reduce variable cost, before this calculation is meaningful.
What should I include in fixed costs?
Costs that stay constant regardless of sales volume in the period — rent, salaries, insurance, fixed software subscriptions. Exclude costs that scale with each unit sold.
Does this account for taxes?
No — this is a standard operating break-even calculation before taxes and financing costs, the version most commonly used for pricing and unit-economics decisions.
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