Break-Even Calculator — Calculate Your Break-Even Point

Total Fixed Costs ($)Enter a valid amount.

Price per Unit ($)Price must be greater than variable cost.

Variable Cost per Unit ($)Enter a valid variable cost.

Break-Even Point

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Break-Even Revenue

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How to Use This Tool

Enter your total fixed costs (rent, salaries, insurance — costs that don't change with sales volume).
Enter your price per unit and variable cost per unit (materials, per-unit labor).
Click Calculate for your break-even point.

The Break-Even Formula

Break-Even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)

The denominator, Price − Variable Cost, is called the contribution margin — the amount each unit sold contributes toward covering fixed costs, after covering its own variable cost.

Fixed vs. Variable Costs

Fixed costs: Stay constant regardless of sales volume — rent, salaries, insurance, loan payments
Variable costs: Scale directly with each unit produced or sold — raw materials, packaging, per-unit shipping

Why Break-Even Analysis Matters

Knowing your break-even point helps you set realistic sales targets, evaluate pricing strategy, and understand how sensitive your profitability is to changes in costs or pricing — a small price increase can substantially lower your break-even point.

Frequently Asked Questions

What if my price is lower than my variable cost?

This means you lose money on every unit sold, regardless of volume — you would never break even. Your price must exceed your variable cost per unit for break-even analysis to be meaningful.

What is contribution margin?

Contribution margin is the amount each unit sold contributes toward covering fixed costs, calculated as price per unit minus variable cost per unit — a higher contribution margin means you reach break-even with fewer unit sales.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.