Break-Even Calculator — Find Your Profit Point
Find exactly how many units you need to sell to cover all costs and start making profit. Enter your fixed costs, price per unit, and variable cost per unit to get your break-even point in units and revenue.
How the Formula Works
Break-Even Units: Fixed Costs ÷ (Price − Variable Cost)
Break-Even Revenue: Break-Even Units × Price Per Unit
Contribution Margin: (Price − Variable Cost) ÷ Price × 100
Example: $5,000 fixed costs, $50 price, $20 variable cost → Break-even = 167 units = $8,333 revenue.
Frequently Asked Questions
What is a break-even point?
The break-even point is the number of units you must sell so that total revenue equals total costs — meaning zero profit and zero loss.
What are fixed costs vs variable costs?
Fixed costs stay the same regardless of output (rent, salaries, software). Variable costs change with each unit produced (materials, shipping, commissions).
How do I lower my break-even point?
Either reduce fixed costs, reduce variable costs per unit, or increase your selling price. Any of these widens your contribution margin.
What is contribution margin?
Contribution margin = Price − Variable Cost per unit. It's how much each sale contributes toward covering fixed costs and generating profit.
Can break-even analysis be used for services?
Yes — use your hourly rate as price, your direct time cost as variable cost, and your monthly overhead as fixed costs.