Break-Even Calculator

Find your break-even point — how many units to sell or how much revenue to generate to cover all fixed and variable costs.

Quick Answer

A break-even calculator shows how many units must be sold, or how much revenue is needed, to cover fixed and variable costs.

Rent, salaries, insurance, etc.

Materials, labor per unit

Revenue per unit sold

Units needed to reach this profit

Break-Even Formulas

Break-Even Units = Fixed Costs / Contribution Margin per Unit Contribution Margin = Selling Price − Variable Cost per Unit Break-Even Revenue = Break-Even Units × Selling Price Units for Target Profit = (Fixed Costs + Target Profit) / Contribution Margin

Example: Small Business

Given

Fixed Costs

$10,000/mo

Variable Cost

$20/unit

Selling Price

$50/unit

Steps

  1. 1Contribution margin = $50 − $20 = $30 per unit
  2. 2Break-even units = $10,000 / $30 = 334 units
  3. 3Break-even revenue = 334 × $50 = $16,700

Result

Must sell 334 units or generate $16,700 in revenue to break even

How to Use This Calculator

  1. 1

    Enter your total fixed costs (monthly or per period).

  2. 2

    Enter the variable cost per unit (materials, labor per unit).

  3. 3

    Enter the selling price per unit.

  4. 4

    Optionally enter a target profit to see how many units to reach that goal.

  5. 5

    Click Calculate to see break-even units, revenue, and contribution margin.

Frequently Asked Questions

The break-even point is where total revenue equals total costs (fixed + variable). At this point, profit is zero — the business neither gains nor loses money.

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Last updated: June 2026