Break-even calculator
Enter your fixed costs, the selling price per unit and the variable cost per unit to see how many units you must sell to cover your costs, and the revenue that goes with it. That level is your break-even point: no profit and no loss, and every unit after it adds to profit.
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How to use it
- Enter the fixed costs for the period you are planning (a month, for example): rent, salaries, subscriptions.
- Enter the selling price of one unit.
- Enter the variable cost per unit: product, packaging, shipping and fees you pay for each unit sold.
- Read the contribution per unit, the break-even units (rounded up) and the break-even revenue.
Example
Fixed costs of 10,000, a unit price of 50 and a variable cost of 30: the contribution is 50 − 30 = 20 per unit.
Break-even units are 10,000 ÷ 20 = 500 units, and break-even revenue is 500 × 50 = 25,000.
Limits and caveats
- The tool assumes one product with a constant price and a constant variable cost per unit. It does not handle a product mix, volume discounts or costs that change with scale.
- Fixed costs and sales must refer to the same period. The tool cannot check that.
- Tax, cash flow and unsold stock are not covered.
- When the unit price is equal to or lower than the variable cost there is no break-even, and the tool explains why instead of showing a negative or infinite number.
- Units are rounded up because you cannot sell part of a unit, and amounts are shown with two decimals. The largest accepted amount is 1,000,000,000,000.
Questions about this tool
What is contribution per unit?
It is what is left of the unit price after its variable cost: price − variable cost. That amount is what each unit sold contributes toward fixed costs first, and toward profit after that.
Why are the units rounded up?
Because selling 333 units when the break-even is 333.33 leaves you with a small loss. The first whole number that covers your costs is 334, so the tool shows both the exact figure and the rounded-up one.
What should I do when the tool says there is no break-even?
It means each unit sold contributes nothing or loses money. The fix is to raise the price or cut the variable cost until the difference is positive, not to sell more.
How do I calculate the break-even point?
Break-even units = fixed costs ÷ (unit price − variable cost per unit). With fixed costs of 6,000, a price of 40 and a variable cost of 25, the contribution is 15 and the break-even point is 6,000 ÷ 15 = 400 units, or 400 × 40 = 16,000 in revenue.
How do I calculate break-even revenue?
Divide the fixed costs by the contribution margin ratio, which is contribution ÷ selling price. In the example above the ratio is 15 ÷ 40 = 37.5%, so break-even revenue is 6,000 ÷ 0.375 = 16,000. This break-even calculator shows the ratio and the break-even revenue next to the units.