Break-Even Calculator | Units, Revenue and Margin
Calculate break-even units, break-even revenue, and contribution margin from fixed costs, variable cost, and selling price.
Calculate Break-Even Units and Revenue
Enter fixed costs, variable cost per unit, and selling price per unit to estimate how many units must be sold before revenue covers costs.
Contribution Margin Drives the Result
If selling price is too close to variable cost, break-even units rise quickly. Include realistic production, platform, shipping, labor, and overhead costs where relevant.
When Break-Even Analysis Helps
Use it before launching a product, pricing a service, planning an event, buying inventory, or checking whether a business idea has enough margin.
About This Tool
Break-Even Calculator finds the point at which total revenue equals total costs, showing how many units must be sold to cover fixed and variable expenses. It is a fundamental tool for pricing decisions and profitability planning.
When to Use It
Use this before launching a product to understand the minimum sales volume needed to avoid a loss, or when evaluating whether a price change improves profitability.
How to Use
- Enter your fixed costs such as rent and salaries.
- Enter the variable cost per unit.
- Enter the selling price per unit.
- Click Calculate to see the break-even quantity and revenue.
Frequently Asked Questions
What is the break-even formula?
Break-even units equals fixed costs divided by the contribution margin per unit, which is selling price minus variable cost per unit.
What is contribution margin?
Contribution margin is the amount each unit sale contributes toward fixed costs after variable costs are subtracted.
How do I use this for pricing decisions?
Set a target profit, add it to fixed costs, and recalculate to find the required sales volume at different price points.