Break-Even Calculator
The break-even point is the sales volume at which total revenue exactly equals total costs — no profit, no loss — and it's a fundamental metric for pricing, production, and launch decisions because it tells you the minimum you must sell to cover your costs. This calculator finds the break-even units and revenue using your fixed costs, price per unit, and variable cost per unit, so you can see how many units you need to sell and how much revenue that represents before you turn a profit. Enter your total fixed costs, the price per unit, and the variable cost per unit, and the calculator returns the break-even units and the break-even revenue. The contribution margin — price per unit minus variable cost per unit — is the amount each sale contributes toward covering fixed costs and then profit, and lowering fixed costs or raising the contribution margin (by raising prices or cutting variable costs) reduces the units you must sell to break even. Break-even analysis is useful for deciding whether to launch a new product (can you realistically sell enough to break even?), for setting prices (what price makes the volume achievable?), and for evaluating cost changes (how does a rent increase shift your break-even?). It finds the pre-tax point of zero profit, so to earn a target after-tax profit, add the desired profit to fixed costs in the calculation. If your variable cost exceeds your price, you lose money on every unit and can never break even, so either raise the price or cut the variable cost before selling more. Break-even analysis works for services too — treat each service engagement as a 'unit' with its price and variable cost. Use this calculator to find the minimum sales to cover costs, guide pricing and production decisions, and see the impact of cost changes on your viability.
Break-Even Calculator
Find the sales volume where total revenue equals total costs.
Break-even units
834
Units to cover costs
Break-even revenue
$83,333
Contribution margin
$60
Per unit
The break-even point is where your business neither profits nor loses money. Lowering fixed costs or raising the contribution margin (price minus variable cost) reduces the units you must sell to break even.
How to Use This Calculator
- 1Enter your total fixed costs.
- 2Enter the price per unit.
- 3Enter the variable cost per unit.
- 4Read the break-even units and revenue.
Why It Helps
- ✓Finds the minimum sales to cover costs.
- ✓Guides pricing and production decisions.
- ✓Shows the impact of cost changes.
- ✓Useful for new product launches.
About This Calculator
The break-even point is the sales volume at which total revenue exactly equals total costs — no profit, no loss — and it's a fundamental metric for pricing, production, and launch decisions because it tells you the minimum you must sell to cover your costs. This calculator finds the break-even units and revenue using your fixed costs, price per unit, and variable cost per unit, so you can see how many units you need to sell and how much revenue that represents before you turn a profit. Enter your total fixed costs, the price per unit, and the variable cost per unit, and the calculator returns the break-even units and the break-even revenue. The contribution margin — price per unit minus variable cost per unit — is the amount each sale contributes toward covering fixed costs and then profit, and lowering fixed costs or raising the contribution margin (by raising prices or cutting variable costs) reduces the units you must sell to break even. Break-even analysis is useful for deciding whether to launch a new product (can you realistically sell enough to break even?), for setting prices (what price makes the volume achievable?), and for evaluating cost changes (how does a rent increase shift your break-even?). It finds the pre-tax point of zero profit, so to earn a target after-tax profit, add the desired profit to fixed costs in the calculation. If your variable cost exceeds your price, you lose money on every unit and can never break even, so either raise the price or cut the variable cost before selling more. Break-even analysis works for services too — treat each service engagement as a 'unit' with its price and variable cost. Use this calculator to find the minimum sales to cover costs, guide pricing and production decisions, and see the impact of cost changes on your viability.
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation.
Frequently Asked Questions
What is the contribution margin?
Price per unit minus variable cost per unit. It is the amount each sale contributes toward covering fixed costs and then profit.
How can I lower my break-even point?
Reduce fixed costs, raise prices, or lower variable costs per unit. Any of these increases the contribution margin or reduces the fixed costs to cover.
Does break-even include taxes?
No. It finds the pre-tax point of zero profit. To earn a target after-tax profit, add the desired profit to fixed costs in the calculation.
What if my variable cost exceeds my price?
You lose money on every unit and can never break even. Either raise the price or cut the variable cost before selling more.
Is break-even analysis only for products?
No. It works for services too — treat each service engagement as a 'unit' with its price and variable cost.
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Written by
James MitchellSenior Financial Analyst & Personal Finance Expert
Certified Financial Planner (CFP) • MBA in Finance, University of Chicago Booth School of Business