⚖️ Break-Even Calculator
Enter your fixed costs, selling price, and variable cost per unit to find how many units — and how much revenue — you need to cover every cost and start turning a profit.
🎯 Your Break-Even Point
What is a Break-Even Calculator?
A break-even calculator tells you the exact point where a business stops losing money and starts making it. By comparing what each sale contributes — its price minus the variable cost to produce it — against your fixed overhead, it finds the number of units, and the revenue, needed to cover everything. Below that line you're absorbing costs; above it, every sale adds to profit.
Use it to sanity-check a price, set a sales target, or judge whether a new product can carry its costs. The results are general informational estimates, not professional tax, accounting, or financial advice — consult a CPA or financial advisor before committing.
❓ Frequently Asked Questions
How is the break-even point calculated?
Break-even units = fixed costs ÷ contribution margin per unit, where the contribution margin is the selling price minus the variable cost of one unit. Each unit sold above break-even contributes its margin straight to profit; each one below leaves part of the fixed costs uncovered. Multiply the units by the price to get the break-even revenue.
What is the contribution margin?
The contribution margin is what's left from each sale after the variable costs of producing that unit — it's the money that 'contributes' first to covering fixed costs and then to profit. The contribution margin ratio expresses it as a percentage of the selling price, which is handy for comparing products with very different price points.
What if my price is below my variable cost?
Then the contribution margin is zero or negative and there is no break-even point — every unit sold loses money, so selling more only deepens the loss. The calculator flags this case rather than returning a misleading number. Raise the price or cut variable costs until each unit makes a positive contribution.
What does break-even leave out?
It assumes a single price and constant per-unit costs, and it ignores taxes, financing, and step changes in fixed costs as you scale. Treat it as a planning baseline. These are general informational estimates, not professional tax, accounting, or financial advice — consult a CPA or financial advisor for pricing and production decisions.