Break-Even Calculator
Find the number of units and the revenue you need to cover fixed and variable costs — your break-even point.
How it works
Contribution = price − variable cost · Break-even units = fixed costs ÷ contribution · Break-even revenue = units × price
The contribution margin is what each sale adds toward fixed costs after covering its own variable cost. Dividing total fixed costs by that per-unit contribution gives the number of units needed to reach zero profit. If the price is at or below the variable cost the contribution is zero or negative, so no volume can ever break even — this calculator flags that case.
Worked example
With $5,000 in fixed costs, a $20 price and a $12 variable cost, each unit contributes $8. Break-even is 5,000 ÷ 8 = 625 units, or $12,500 in revenue.
Frequently asked questions
What is the break-even point?
It is the sales volume where total revenue exactly covers fixed plus variable costs — zero profit, zero loss. Every unit sold beyond it earns the full contribution margin as profit.
What is contribution margin?
The selling price minus the variable cost per unit — the amount each sale contributes toward fixed costs and, after break-even, profit. Break-even units = fixed costs ÷ contribution margin.
Why must price exceed variable cost?
If the price is at or below variable cost, each sale adds nothing toward fixed costs (or loses money), so no volume ever covers them. This calculator flags that case as an error.
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Educational estimate, not financial advice.