Break-Even Calculator
Find the units and revenue you must sell to cover fixed costs, given your price and variable cost per unit.
How it works
Break-even units = fixed costs ÷ (price − variable cost) · Break-even revenue = units × price
Every unit you sell contributes its price minus its variable cost toward covering fixed costs — that difference is the contribution margin. Break-even is where those contributions exactly equal fixed costs; below it you lose money, above it you profit. If price does not exceed variable cost, you lose money on every sale and can never break even.
Worked example
With $10,000 in fixed costs, a $25 price and $15 variable cost, each unit contributes $10. Break-even is 10,000 ÷ 10 = 1,000 units, or $25,000 in revenue.
Frequently asked questions
What counts as fixed vs variable cost?
Fixed costs (rent, salaries, insurance) do not change with volume. Variable costs (materials, packaging, per-unit shipping and fees) rise with each unit sold.
What is contribution margin?
Price minus variable cost per unit — the amount each sale contributes to fixed costs and then profit. As a percentage of price it is the contribution margin ratio.
How do I lower my break-even point?
Cut fixed costs, raise the price, or reduce variable cost per unit. Even a small price increase can drop the break-even quantity sharply.
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This is an educational estimate, not financial advice. Confirm figures with your lender, advisor or tax professional.