Break-Even Point Calculator

Find out how many units you need to sell to cover all your costs.

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Results

Break-even units
500
Break-even revenue
$125,000.00
Contribution margin per unit
$100.00
Contribution margin ratio
40%

The break-even point is the sales level at which total revenue equals total costs — you make neither a profit nor a loss. It is one of the first numbers to check when evaluating a new product, location or business idea.

This calculator works out your contribution margin per unit (price − variable cost) and shows the minimum units and revenue needed to cover your fixed costs.

How to calculate Break-even point

  1. Enter total fixed costs for the period (rent, salaries, subscriptions…).
  2. Enter the selling price per unit.
  3. Enter the variable cost per unit (materials, shipping, commissions…).

Break-even point formula

  • Contribution margin = Price − Variable cost
  • Break-even units = Fixed costs ÷ Contribution margin
  • Break-even revenue = Break-even units × Price

Break-even point example

With $50,000 monthly fixed costs, a $250 price and $150 variable cost, each unit contributes $100. You need 500 units — $125,000 in revenue — to break even.

Break-even point: common questions

Why does the break-even point matter?

It shows whether your pricing and cost structure are sustainable and helps you set realistic sales targets.

What if my price is below variable cost?

Then every sale loses money and there is no break-even point. Raise the price or cut unit costs.

How can I lower my break-even point?

Reduce fixed costs, increase your price or cut variable costs — anything that widens the contribution margin.