Break-Even Calculator
Find exactly how many units you need to sell to break even. See contribution margin, margin of safety, and profit at multiple volume scenarios.
Profit / loss by sales volume
| Category | Profit / loss |
|---|---|
| 125 u | -$2,500 |
| 188 u | -$1,250 |
| 250 u | $0 |
| 313 u | $1,250 |
| 375 u | $2,500 |
Break-even is at 250 units — where profit crosses zero.
Volume scenarios (monthly)
| Volume | Units | Revenue | Profit / Loss |
|---|---|---|---|
| 50% of B/E | 125 | $4,375 | -$2,500 |
| 75% of B/E | 188 | $6,563 | -$1,250 |
| 100% of B/E | 250 | $8,750 | $0 |
| 125% of B/E | 313 | $10,938 | +$1,250 |
| 150% of B/E | 375 | $13,125 | +$2,500 |
How to use Break-Even Calculator
This break-even calculator tells you how many units you must sell — or how much revenue you need — to cover your costs before you start making a profit. Enter your fixed costs, variable cost per unit and selling price to find the break-even point in units and dollars, plus the contribution margin that drives every dollar of profit beyond it. Essential for pricing, business planning and "is this worth it?" decisions.
- Enter your total fixed costs (rent, salaries, etc.).
- Enter the variable cost per unit.
- Enter the selling price per unit.
- Review the break-even point in units and revenue.
- Add a target profit to see the units needed to reach it.
Your data never leaves your device — 100% private processing.
The break-even formula
Break-even units = fixed costs ÷ (price − variable cost per unit). The denominator is the contribution margin — the amount each sale contributes toward fixed costs and then profit. Once you pass the break-even point, every additional unit adds its full contribution margin to profit. Raising price or cutting variable cost lowers the break-even point sharply.
Using break-even for decisions
Break-even analysis helps set prices, evaluate whether a product is viable, and understand risk: a high break-even point relative to expected sales is a warning sign. Add a target profit to the fixed costs to find the volume needed to hit a profit goal, and test how price changes shift the whole picture.
| Price | Contribution | Break-even units |
|---|---|---|
| $10 | $4 | 2,500 |
| $12 | $6 | 1,667 |
| $16 | $10 | 1,000 |
Worked examples
Product launch
Inputs: Fixed $10,000 · var $6 · price $16
Result: 1,000 units · $16,000 revenue
With profit goal
Inputs: add $5,000 target profit
Result: 1,500 units
Glossary
- Fixed cost
- Costs that do not change with sales volume, such as rent.
- Variable cost
- Cost that scales with each unit produced or sold.
- Contribution margin
- Selling price minus variable cost — what each sale contributes to fixed costs and profit.
- Break-even point
- The sales level where total revenue equals total cost (zero profit).
Related reading
Frequently Asked Questions
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Why use Break-Even Calculator?
- Transparent formulas so you understand every calculation
- Supports multiple currencies and regional tax rules
- Saves you from spreadsheet errors with validated inputs
- Shareable results for discussions with advisors or partners
Common use cases
- Calculate how long to pay off a credit card balance
- Model different mortgage scenarios before house hunting
- Forecast investment growth with compound interest
- Break even analysis for a new product or service
- Compare net salary after tax across different countries
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