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Break-Even Calculator

Find the units and revenue needed to cover your fixed costs.

Calculators Reviews Free · no sign-up

Rent, salaries, software — costs that do not change with volume.

Materials, packaging, shipping, per-sale fees.

Used to work out your margin of safety.

UnitsRevenueTotal costProfit / loss

Break-even point

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Contribution margin—
Contribution margin ratio—
Break-even revenue—
Units for target profit—
Margin of safety—

Quick Tool Overview

The Break-Even Calculator finds the point where total revenue equals total cost, from your fixed costs, variable cost per unit and selling price. The number doing the work is the contribution margin — selling price minus variable cost — and break-even is simply fixed costs divided by it.

What it does
Finds the units and revenue needed to cover fixed costs
You give it
Fixed costs, variable cost per unit and a selling price
You get back
Break-even units and revenue, plus margin of safety
Best for
Business plans, pricing decisions and new product launches
Calculators Free, unlimited use No sign-up Runs in your browser

About the Break-Even Calculator

Enter your fixed costs, the variable cost of making one unit and your selling price to find the point where total revenue equals total cost. Below it you are making a loss, above it every additional unit contributes pure profit.

The number doing the work is the contribution margin: selling price minus variable cost, the amount each sale contributes towards fixed costs. Break-even is simply fixed costs divided by that figure. It follows that a small price rise moves break-even far more than a similar cut in fixed costs, because it lifts the contribution on every unit. You can also enter a target profit to see the volume needed to earn it, and a current sales figure to get your margin of safety.

Key features of the Break-Even Calculator

Contribution margin surfaced

The amount each sale contributes towards fixed costs is shown, since it is the figure the whole calculation rests on.

Why price beats cost-cutting

A small price rise moves break-even far more than a similar cut in fixed costs, because it lifts the contribution on every unit.

Target profit mode

Enter the profit you want and get the volume needed to earn it, not just to survive.

Margin of safety

Add your current sales figure to see how far above break-even you actually are.

Units and revenue both

Break-even is reported in both, because one is what you plan against and the other is what you report.

How to use the Break-Even Calculator

  1. 1

    Enter your fixed costs

    Rent, salaries, software and anything else that does not change with volume, for the period you are analysing.

  2. 2

    Add the variable cost per unit

    Materials, packaging, shipping and per-sale fees — the costs that scale with each unit sold.

  3. 3

    Set the selling price

    The contribution margin per unit is worked out from this.

  4. 4

    Add a profit target

    Optional. Enter a profit goal to see the volume required to reach it, not just to break even.

Frequently asked questions

Break-even units equals fixed costs divided by the contribution margin per unit, where contribution margin is the selling price minus the variable cost per unit.

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