Break-even calculator
Find how many units you must sell to cover your costs. Add a target profit to see how many you need to earn it.
Free to use, no account needed. What you type stays in your browser.
Break-even point (units)
500
Revenue at break-even
$25,000.00
Contribution per unit
$20.00
Contribution margin
40%
Revenue and total costs
- Revenue
- Total costs
Where the lines cross you break even. Further right you make a profit; further left, a loss.
How this is calculated
Break-even is the point where revenue equals total costs, so profit is zero. These are the formulas used:
- Contribution per unit
- P − V
- Break-even units
- ⌈F ÷ (P − V)⌉
- Units for a target profit
- ⌈(F + G) ÷ (P − V)⌉
- Revenue at break-even
- units × P
F is the fixed costs, P is the selling price per unit, V is the variable cost per unit and G is the target profit.
Fixed costs do not change with the number of units; variable costs grow with every unit sold. The contribution per unit is what each sale leaves to pay the fixed costs.
You cannot sell part of a unit, so the result is rounded up to the next whole unit. Revenue is that number of units times the price.
The model assumes the price and the variable cost stay the same at any volume, and that everything you make is sold. Real costs can change as you grow, so treat the result as a planning guide.
Worked example
With fixed costs of $10,000.00, a price of $50.00 and a variable cost of $30.00 per unit, each unit leaves $20.00 (40%) to pay the fixed costs. You break even at 500 units, which is $25,000.00 in sales.
Break-even questions
What is the break-even point?
It is the number of units you must sell so that revenue exactly covers all your costs, fixed and variable. Below it you make a loss; above it you make a profit.
How do you calculate break-even?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit), rounded up. For example, fixed costs of 10,000, a price of 50 and a variable cost of 30 give 10,000 ÷ 20 = 500 units, or 25,000 in sales.
What is the difference between fixed and variable costs?
Fixed costs stay the same however many units you sell, for example rent, salaries and software subscriptions. Variable costs rise with every unit sold, for example materials, packaging, shipping and sales commission.
Why is the result rounded up?
You cannot sell a fraction of a unit. If the calculation gives 166.67 units, 166 units still leave a small loss, so you need 167.
Is my information stored or sent anywhere?
No. The calculation runs in your browser. The numbers you enter are not sent to us or saved.
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Results are estimates for planning. They are not financial, tax or religious advice.