About the Break-Even Calculator
The break-even point is where revenue exactly covers costs — no profit, no loss. Enter fixed costs, price per unit, and variable cost per unit to see how many units and how much revenue you need to get there.
How it’s calculated
Break-even units = fixed costs ÷ (price − variable cost). Break-even revenue = break-even units × price.
Example calculation
With $10,000 fixed costs, a $25 price, and $15 variable cost, you break even at 1,000 units, or $25,000 in revenue.
Frequently asked questions
What is contribution margin?
It's price minus variable cost — the amount each sale contributes toward fixed costs. Break-even is simply fixed costs divided by contribution margin.
What if price is below variable cost?
Then every sale loses money and there is no break-even point — you'd need to raise the price or cut variable cost first.
This tool provides estimates for general informational and educational purposes only. Results are based on the values you enter and standard formulas, and may not reflect your specific circumstances.