Break-even Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Find the unit and revenue break-even point from fixed cost, price, and variable cost.
Break-even Calculator
Free online break-even calculator to find the number of units you need to sell and the amount of revenue you need to earn in order to cover all fixed and variable costs. This calculator is useful for business owners, startup founders, finance teams, students, and managers who want to understand when a product, service, or project begins to make no loss and no profit. Break-even analysis is one of the most important business planning tools because it helps connect pricing, costs, and expected sales volume.
The calculator works with fixed costs, price per unit, and variable cost per unit. Fixed costs are expenses that stay the same within a relevant range, such as rent, salaries, and insurance. Variable cost per unit changes with production volume, such as material, packaging, and direct labor. Once those values are entered, the calculator shows break-even units and break-even revenue. This makes it easier to estimate the minimum sales level needed before profit begins.
The formula of break-even
Break-even units = Fixed costs / (Price per unit – Variable cost per unit)
Contribution margin per unit = Price per unit – Variable cost per unit
Break-even revenue = Break-even units x Price per unit
Here fixed costs means total fixed operating costs for the selected period, price per unit means the selling price of one unit, and variable cost per unit means the direct cost attached to one unit. The difference between selling price and variable cost is the contribution margin per unit, which is the amount available to cover fixed costs.
Solved Example
Example 1: Find the break-even point if fixed costs are $50,000, selling price per unit is $25, and variable cost per unit is $10.
Solve: Contribution margin per unit = 25 – 10 = $15
Break-even units = 50000 / 15 = 3,333.33 units
Break-even revenue = 3333.33 x 25 = $83,333.25
Example 2: Find the result if fixed costs are $36,000, selling price per unit is $18, and variable cost per unit is $9.
Solve: Contribution margin per unit = 18 – 9 = $9
Break-even units = 36000 / 9 = 4,000 units
Break-even revenue = 4000 x 18 = $72,000
Example 3: Find the result if fixed costs are $80,000, selling price per unit is $40, and variable cost per unit is $24.
Solve: Contribution margin per unit = 40 – 24 = $16
Break-even units = 80000 / 16 = 5,000 units
Break-even revenue = 5000 x 40 = $200,000
Table of break-even calculator
| Fixed Costs | Price per Unit | Variable Cost per Unit | Break-even Units | Break-even Revenue |
|---|---|---|---|---|
| $24,000 | $12 | $6 | 4,000 | $48,000 |
| $36,000 | $18 | $9 | 4,000 | $72,000 |
| $50,000 | $25 | $10 | 3,333.33 | $83,333.25 |
| $80,000 | $40 | $24 | 5,000 | $200,000 |
How to use this break-even calculator
Enter total fixed costs in the proper input field. After that, enter the selling price per unit and the variable cost per unit. Then click the calculate button. The calculator will show the break-even units and break-even revenue in the result box. Make sure all values belong to the same product, service, or operating period so the output stays meaningful.
This calculator is useful when planning product launches, setting prices, reviewing budgets, and checking sales targets. If the break-even units are very high, the business may need to raise prices, lower variable costs, reduce fixed costs, or improve sales volume expectations. If the break-even point is low, the path to profitability may be more achievable. This makes break-even analysis especially useful for startups and growing businesses.
When using the result, remember that break-even analysis is a planning tool based on assumptions. Real businesses may face discounts, demand shifts, mixed pricing, capacity limits, or changing input costs. Even so, the break-even formula remains a simple and powerful way to understand the relationship between cost structure and sales performance. This calculator gives a fast numerical view that supports pricing decisions, sales planning, and financial analysis.