Break-Even Calculator
Calculate break-even point for your business
Calculator
Rent, salaries, insurance, etc.
Materials, labor per unit
How to Use
Calculate break-even point
Enter fixed costs
Input your total fixed costs
Enter price per unit
Input your selling price
Enter variable cost
Input cost per unit produced
See break-even
View units and revenue needed to break even
Break-Even Formula
Break-Even Units = Fixed Costs / (Price - Variable Cost) Break-Even Revenue = Fixed Costs / Contribution Margin Ratio
The point where contribution margin from sales exactly covers fixed costs.
Frequently Asked Questions
Break-even is where total revenue equals total costs - no profit or loss. Break-even units = Fixed Costs / (Price - Variable Cost per Unit). If fixed costs are $10,000, price is $50, variable cost is $30: 10,000/(50-30) = 500 units.
Break-even revenue = Fixed Costs / Contribution Margin Ratio. Contribution margin ratio = (Price - Variable Cost) / Price. With $10,000 fixed costs and 40% contribution margin: $10,000 / 0.4 = $25,000 revenue needed.
Fixed costs stay constant regardless of output (rent, salaries, insurance). Variable costs change with production (materials, shipping, commissions). Some costs are mixed (utilities have fixed and variable components).
Calculate break-even at different prices to find viable pricing. Higher price = lower break-even units but potentially fewer sales. Factor in competitor pricing and price elasticity. Aim to break even within a reasonable timeframe.