⚖ Break-Even Calculator
Find the break-even point for any product or service. Enter fixed costs, price per unit and variable cost per unit to see the exact units and revenue needed to break even.
What is this tool?
The break-even point is the number of units a business must sell (or the total revenue it must earn) for its total revenue to exactly equal its total costs — in other words, the point at which it makes neither a profit nor a loss. Below the break-even point the business loses money; above it, the business makes a profit. Knowing this point is essential before launching a product, setting a price, or deciding how much to produce. This calculator takes three inputs: the fixed costs (costs that do not change with the number of units, such as rent and salaries), the price per unit (how much you charge for one unit), and the variable cost per unit (the cost that rises with each unit produced, such as materials). From these it calculates the contribution margin per unit (price minus variable cost), the number of units you must sell to break even, and the total revenue at the break-even point. Everything is computed locally in your browser, so your business figures stay private. The tool validates that the price is greater than the variable cost (otherwise every unit sold increases the loss and there is no break-even point) and clearly reports the result in both units and revenue.How it works
The contribution margin per unit is the price per unit minus the variable cost per unit; it represents how much each unit sold contributes toward covering the fixed costs. The break-even point in units is then the fixed costs divided by the contribution margin per unit. The break-even point in revenue is the break-even units multiplied by the price per unit. For example, if fixed costs are 10,000, the price per unit is 50 and the variable cost per unit is 30, the contribution margin per unit is 20. The break-even point is 10,000 divided by 20, which is 500 units, and the break-even revenue is 500 multiplied by 50, which is 25,000. The calculator checks that the price is greater than the variable cost; if it is not, the contribution margin would be zero or negative, meaning no number of sales can ever cover the fixed costs, and the tool reports this clearly instead of producing a meaningless or negative unit count.How to use
- Enter your total fixed costs (costs that do not change with output, such as rent).
- Enter the selling price per unit.
- Enter the variable cost per unit (the cost that rises with each unit made).
- Press the Calculate button to see the results.
- Read the contribution margin, the break-even units and the break-even revenue.
Frequently Asked Questions
Frequently Asked Questions
What exactly is the break-even point?
The break-even point is the number of units (or total revenue) at which total revenue exactly equals total costs, so the business makes no profit and no loss. Selling more than this point produces a profit; selling fewer produces a loss. It is a core concept in pricing and business planning.
What are fixed and variable costs?
Fixed costs stay the same regardless of how many units you produce or sell — examples include rent, insurance and salaried staff. Variable costs rise and fall with production volume — examples include raw materials, packaging and per-unit shipping. The calculator needs both to find the break-even point.
Why did I get an error message?
The most common cause is a price per unit that is less than or equal to the variable cost per unit. In that case the contribution margin is zero or negative, so every unit sold loses money and no amount of sales can ever cover the fixed costs. Either raise the price or lower the variable cost to create a positive contribution margin.
How can I lower my break-even point?
You can lower it by reducing fixed costs, raising the price per unit, or reducing the variable cost per unit. All three increase the contribution margin or reduce the fixed costs to cover, so fewer units are needed to break even. Of the three, raising the price has the most direct effect per unit.
Tips & Advice
The break-even point is a planning tool, not a sales target — aim to sell comfortably above it so you have a buffer against slow months or cost increases. Raising the price is usually the fastest way to lower the break-even point, because it increases the contribution margin on every single unit. Be realistic about fixed costs: many founders forget to include their own salary, software subscriptions and one-off setup costs, which understates the true break-even point. If you sell multiple products, calculate a weighted-average contribution margin based on your expected sales mix, because treating every product the same gives a misleading result. The break-even revenue figure is handy for setting a minimum monthly sales goal, since revenue is easier to track day to day than unit counts.
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