Break-Even Calculator
Work out the break-even point in units and revenue from your fixed costs, selling price and variable cost per unit.
How it works
Each sale contributes its price minus its variable cost towards the fixed costs. That figure is the contribution margin, and break-even is simply the number of units whose contributions add up to the fixed costs.
If the contribution margin is zero or negative, there is no break-even point. Selling more makes the loss larger, not smaller — no volume fixes a price below variable cost, which is worth checking before planning growth.
Fixed costs are only fixed within a range. Doubling volume often means another machine, another shift or a bigger unit, which raises fixed costs and moves the break-even point up with it.
The formula
Contribution margin
contribution = price per unit − variable cost per unit
Break-even units
units = fixed costs ÷ contribution
Break-even revenue
revenue = break-even units × price per unit
Units for a target profit
units = (fixed costs + target profit) ÷ contribution
Worked examples
| Scenario | Working | Result |
|---|---|---|
| Fixed 10,000, price 25, variable 15 | 10000 ÷ 10 | 1,000 units, 25,000 revenue |
| Raising the price to 30 | 10000 ÷ 15 | 667 units — a third fewer |
| Variable cost above the price | Negative contribution | No break-even at any volume |
When you'd use it
- Checking whether a product can be profitable at its planned price
- Setting a sales target that covers costs
- Seeing how a price change moves the target
- Deciding whether to take on a fixed cost
Common questions
What counts as a fixed versus a variable cost?
Fixed costs stay the same whatever you sell — rent, salaries, software, insurance. Variable costs occur per unit — materials, packaging, payment fees, shipping. Getting the split wrong moves the break-even point substantially.
Why does a small price rise cut the break-even point so much?
Because the price rise lands entirely on the contribution margin. If price is 25 and variable cost 15, the margin is 10; raising the price to 30 makes it 15 — a 50% larger contribution from a 20% price rise.
What if there is no break-even point?
It means your variable cost per unit is at or above your selling price, so every sale loses money before fixed costs are touched. Volume cannot rescue that — the price or the unit economics have to change.