Finance

Break-Even Point Calculator

Find how many units you need to sell to cover all fixed and variable costs, or solve for any break-even variable.

Enter values above to see the result.

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Break-Even Formula

Calculate Units

Units = Fixed Costs ÷ (Selling Price − Variable Cost)

Calculate Fixed Costs

Fixed Costs = Units × (Selling Price − Variable Cost)

Calculate Selling Price

Selling Price = Variable Cost + (Fixed Costs ÷ Units)

What is break-even analysis?

Break-even analysis helps businesses determine the minimum sales volume required to avoid losses. By identifying the point where total revenue equals total costs, founders, product managers, and finance teams can set realistic pricing and sales targets before launching a product or service.

The break-even point depends on two key variables: the contribution margin (selling price minus variable cost per unit) and total fixed costs. A higher contribution margin lowers the break-even threshold, while rising fixed costs push it higher. Tracking both over time gives you a live view of how pricing changes and cost efficiencies affect your profitability floor.

Frequently asked questions

What is the break-even point?
The break-even point is the level of sales at which total revenue equals total costs, meaning the business neither makes a profit nor incurs a loss. It is a fundamental concept in business planning and financial analysis.
How do you calculate break-even units?
Divide total fixed costs by the contribution margin per unit, which is the selling price minus the variable cost per unit. For example, if fixed costs are $10,000, selling price is $50, and variable cost is $20, the break-even point is 10,000 ÷ 30 = 334 units.
What is contribution margin?
Contribution margin is the amount each unit sold contributes toward covering fixed costs and generating profit. It equals selling price minus variable cost per unit and is the key driver of break-even analysis.
What are fixed costs vs variable costs?
Fixed costs remain constant regardless of production volume, such as rent, salaries, and insurance. Variable costs change directly with output, such as raw materials and direct labour. Understanding both is essential for accurate break-even analysis.
How can I lower my break-even point?
You can lower your break-even point by reducing fixed costs, lowering variable costs per unit, or increasing your selling price. Improving your contribution margin through any of these levers will reduce the number of units you need to sell before becoming profitable.
What is the break-even revenue?
Break-even revenue is the total sales value at the break-even point. You can calculate it by multiplying break-even units by the selling price, or by dividing fixed costs by the contribution margin ratio (contribution margin ÷ selling price).

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