Break-Even Calculator
The break-even calculator determines how many units you must sell to cover all costs, or the revenue required to break even. Enter your fixed costs, variable cost per unit, and sale price per unit. The calculator shows break-even point in units and dollars, helping you plan pricing and sales targets.
Break-even formulas
Break-even Units = Fixed Costs / (Selling Price - Variable Cost)
Break-even Revenue = Break-even Units × Selling Price
Contribution Margin = Selling Price - Variable Cost
Contribution margin is the profit per unit available to cover fixed costs.
How to use this calculator
- Enter your total annual fixed costs in "Fixed costs".
- Enter the variable cost to produce one unit in "Variable cost per unit".
- Enter your selling price per unit in "Selling price per unit".
- The calculator shows break-even point in units and total revenue needed.
Understanding the results
Break-even units: The number of units you must sell to cover all fixed and variable costs. Below this, you lose money.
Break-even revenue: Total dollars of sales needed to break even. Useful for pricing and revenue planning.
Contribution margin: Profit per unit. Higher is better, as each unit contributes more to covering fixed costs.
Break-even calculator: frequently asked questions
What is break-even point?
Break-even is the volume of sales at which total revenue equals total costs. Below break-even, you lose money. Above break-even, you profit.
How is break-even calculated?
Break-even units = Fixed Costs / (Price per Unit - Variable Cost per Unit). Break-even revenue = Break-even Units * Price per Unit.
What are fixed costs?
Fixed costs do not change with production volume. Examples: rent, salaries, insurance, utilities. You pay them whether you sell 0 or 1,000 units.
What are variable costs?
Variable costs change with production. Examples: raw materials, packaging, commissions. More units = higher total variable costs.
How do I improve break-even?
Reduce fixed costs, reduce variable costs per unit, or raise the sale price. Lower break-even makes profitability faster.
Official sources
- U.S. Small Business Administration: Business Planning Resources.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.