Break-Even Calculator
Calculate break-even units and revenue from fixed and variable costs.
This break-even calculator finds how many units must be sold (or how much revenue is needed) to cover all fixed and variable costs, the point at which a business or product line neither makes nor loses money.
Enter your fixed costs, price per unit, and variable cost per unit, and the calculator returns your break-even point.
Worked Calculation Examples
| Scenario | Result | Calculation Step |
|---|---|---|
| $50,000 fixed costs, $25 price, $15 variable cost | 5,000 units | Contribution margin = 25 − 15 = $10. Break-even = 50,000 ÷ 10 = 5,000 units. |
| $20,000 fixed costs, $40 price, $30 variable cost | 2,000 units | Contribution margin = 40 − 30 = $10. Break-even = 20,000 ÷ 10 = 2,000 units. |
The Break-Even Formula
Break-even units = fixed costs / (price per unit - variable cost per unit). The denominator, called contribution margin, is how much each unit sold contributes toward covering fixed costs after its own variable cost is subtracted - a higher contribution margin means fewer units are needed to break even.
Why Fixed vs. Variable Cost Classification Matters
Fixed costs (rent, salaries, insurance) don't change with production volume, while variable costs (materials, per-unit labor, shipping) scale directly with each unit produced or sold - correctly classifying costs into these two categories is essential for an accurate break-even calculation, since misclassifying a cost changes both the fixed cost total and the contribution margin.
How to Use the Break-Even Calculator
- Open the Break-Even Calculator and enter the values requested in the input fields.
- Check the units, percentages, dates, or time periods before reading the answer.
- Review the instant result and adjust any value to compare another scenario.
- Use the formula, example, and FAQs below to understand how the break even calculator works.
Frequently Asked Questions
How do you calculate the break-even point?
Divide total fixed costs by the contribution margin (price per unit minus variable cost per unit): break-even units = fixed costs / (price - variable cost).
What is contribution margin?
It's the amount each unit sold contributes toward covering fixed costs, calculated as price per unit minus variable cost per unit - a higher contribution margin means fewer units are needed to reach break-even.
What happens to profit above the break-even point?
Once fixed costs are fully covered at the break-even point, each additional unit sold contributes its full contribution margin directly to profit, since fixed costs no longer need to be covered by additional sales.
How do I use this break even calculator?
Enter the known values, review the units or settings, and the calculator updates the result instantly. The formula and example on this page show how the answer is produced.
What does the Break-Even Calculator calculate?
Calculate break-even units and revenue from fixed and variable costs. It is designed for fast browser-based calculations without sign-up, downloads, or manual spreadsheet setup.
What formula does this break-even use?
The formula is: units = fixed costs / (price - variable cost). Break-even analysis, distinguishing fixed from variable costs to find the point where total revenue equals total cost, was formalized within cost accounting and industrial engineering in the early 20th century - the underlying concept of 'contribution margin' (price minus variable cost) remains a core building block of modern managerial accounting used well beyond just break-even calculations.
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Last updated: September 27, 2026.