Break-even Calculator

Find the units and revenue you need before costs are covered.

Costs that stay the same no matter how much you sell.

What you sell one unit for.

Cost to make or buy one unit.

Result—

Enter your values and calculate to see the result.

Formula used

Contribution margin = Price per unit − Variable cost per unit
Break-even units   = Fixed costs ÷ Contribution margin
Break-even revenue = Break-even units × Price per unit
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Worked example

Fixed costs: $5,000   Price/unit: $50   Variable cost/unit: $30

Contribution margin: $50 − $30 = $20

Break-even units: $5,000 ÷ $20 = 250 units

Break-even revenue: 250 × $50 = $12,500

Frequently asked questions

What does break-even mean?

Break-even is the point where total revenue equals total costs, so you are neither making nor losing money. Selling one more unit after that starts generating profit.

What is the contribution margin?

It is the price per unit minus the variable cost per unit. It is the amount each sale contributes toward covering your fixed costs, and it is the divisor in the break-even formula.

What counts as a fixed cost versus a variable cost?

Fixed costs stay the same regardless of how much you sell — rent, software subscriptions, base salaries. Variable costs rise with each unit — materials, shipping, payment-processing fees, commissions.

Why is my break-even negative or invalid?

If your price per unit is at or below your variable cost per unit, each sale loses money and there is no break-even point. Raise the price or lower the variable cost so the contribution margin is positive.