Break-Even Calculator
Find how many units you need to sell to cover fixed and variable costs, and how many to reach a target profit.
Inputs
Rent, salaries, insurance… for the period
Materials, packaging, commissions…
Result
Break-even point
500units
- Break-even revenue
- 25,000.00
- Contribution per unit
- 20.00
- Contribution margin
- 40%
Formula
Break-even units = Fixed costs ÷ (Price − Variable cost)
How it works
The break-even point is how many units you need to sell to cover all your costs — the point where profit is zero. Every unit you sell contributes its price minus its variable cost toward paying the fixed costs.
- Fixed costs don't change with volume: rent, salaries, insurance, software.
- Variable costs are paid per unit: materials, packaging, shipping, payment fees.
- Add a target profit to see how many units you need to reach it.
Use the same period for everything — for example, monthly fixed costs and monthly sales.
Formula
- Contribution per unit = Price − Variable cost
- Break-even units = Fixed costs ÷ Contribution per unit
- Break-even revenue = Break-even units × Price
- Units for target profit = (Fixed costs + Target profit) ÷ Contribution per unit
Example
Fixed costs of 10,000, price 50, variable cost 30
- 1Contribution per unit = 50 − 30 = 20
- 2Break-even = 10,000 ÷ 20 = 500 units
- 3Break-even revenue = 500 × 50 = 25,000
- 4For a 5,000 profit: (10,000 + 5,000) ÷ 20 = 750 units
Sell 500 units to break even and 750 units to make 5,000.
Frequently asked questions
What is contribution margin?
It is the share of each sale left after variable costs, available to cover fixed costs and then profit. A product that sells for 50 with 30 of variable cost has a 20 contribution, or a 40% contribution margin.
How can I lower my break-even point?
Raise the price, reduce variable costs per unit or cut fixed costs. Small price changes often have the biggest effect because they increase the contribution of every unit.
Why is the result rounded up?
You can't sell a fraction of a unit, so the calculator rounds up to the first whole unit that covers your costs. The exact value is shown below it.