Break-Even Calculator
Calculate your break-even point in units and sales revenue instantly.
How to Use the Break-Even Calculator
Enter fixed costs, selling price per unit and variable cost per unit to estimate the sales volume required to break even.
Practical Example
With USD 10,000 fixed costs, a USD 50 selling price and USD 30 variable cost, contribution per unit is USD 20 and break-even volume is 500 units.
Factors That Affect the Result
Changing prices, variable costs, product mix, capacity limits and additional fixed expenses can shift the true break-even point.
Frequently Asked Questions
What is break-even?
It is the point where total revenue equals total cost.
Does profit equal zero at break-even?
Yes, under the simplified model.
Can fixed costs change?
Yes, and that changes the break-even volume.
Related Tools
What Break-Even Means
The break-even point is where total revenue equals the costs included in the model, so profit is zero. In a basic unit calculation, break-even units = fixed costs / (selling price per unit − variable cost per unit). The amount in parentheses is the contribution margin per unit.
Example and Assumptions
If fixed costs are 10,000 and each unit contributes 25 after variable cost, the simplified break-even volume is 400 units. The result changes quickly when price, variable cost, or fixed overhead changes, which makes scenario testing useful.
Real businesses may have multiple products, stepped fixed costs, changing prices, capacity limits, taxes, returns, and costs that are not perfectly fixed or variable. The calculator provides a planning estimate based on the inputs rather than a guarantee of profitability. Consider margin of safety and cash-flow timing alongside break-even volume.