Break-Even Calculator
Find how many units you need to sell to cover your costs using fixed costs, selling price per unit, and variable cost per unit.
Contribution Margin = Selling Price − Variable Cost
Break-Even Units = Fixed Costs ÷ Contribution Margin
Break-Even Revenue = Break-Even Units × Selling Price
If fixed costs are 1,000, price is 50, and variable cost is 30, break-even units are 50.
Enter fixed costs, selling price per unit, and variable cost per unit. The calculator finds units and revenue needed to break even.
Use it before launching a product, planning sales targets, or checking business viability.
Common mistakes include ignoring variable costs, underestimating fixed costs, or using selling price lower than variable cost.
Examples
Example 1: Basic break-even
Fixed Costs: 1,000
Price: 50
Variable Cost: 30
Example 2: Higher fixed cost
Fixed Costs: 2,000
Margin: 20
Example 3: Low margin
Small margins require more sales to break even.
Review pricing carefullyWhen to Use This Calculator
- Set sales targets
- Test pricing decisions
- Plan a new product
- Review business costs
- Estimate viability
How It Works
- Enter fixed costs.
- Enter price and variable cost.
- Calculate units needed to break even.
Common Mistakes
- Ignoring variable costs
- Underestimating fixed costs
- Setting price too low
- Confusing revenue with profit
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Frequently Asked Questions
What is break-even point?
It is the sales level where total revenue covers total costs.
How do I calculate break-even units?
Divide fixed costs by selling price minus variable cost per unit.
What if variable cost is higher than price?
The calculator cannot find a useful break-even point because each sale loses money.
Can I use this for services?
Yes, if you can estimate fixed costs, price per service, and variable cost per service.
Is break-even the same as profit?
No. Break-even means no profit and no loss.