Break-Even in Dollars Calculator
Find the sales revenue you must reach to cover all costs — break-even in dollars from fixed costs and contribution margin ratio.
How it works
Contribution margin ratio = (price − variable cost) ÷ price · Break-even $ = fixed costs ÷ contribution margin ratio
Break-even in dollars answers "how much revenue" rather than "how many units", which is handy when you sell many products at different prices. It divides fixed costs by the contribution margin ratio — the share of every sales dollar left over after variable costs. A higher margin ratio means each dollar of sales does more work, so you break even sooner.
Worked example
With $60,000 of fixed costs, a $50 price and $30 variable cost, the contribution margin is $20, a ratio of 20 ÷ 50 = 40%. Break-even revenue is 60,000 ÷ 0.40 = $150,000, which is 3,000 units at $50 each.
Frequently asked questions
When should I use dollars instead of units?
Use the dollar version when you sell a mix of products at different prices and a single "unit" is meaningless. As long as your overall contribution margin ratio is stable, break-even revenue is a cleaner target than a unit count.
What is the contribution margin ratio?
It is the fraction of each sales dollar that remains after variable costs, available to cover fixed costs and then profit. A 40% ratio means 40 cents of every dollar goes toward fixed costs until they are paid off.
Does break-even include profit?
No — break-even is the point where profit is exactly zero. To hit a profit target, add the desired profit to fixed costs before dividing by the margin ratio.
Related calculators
Educational estimate, not financial advice.