Break-Even Calculator
Calculate break-even point in units and revenue from fixed costs, price per unit, and variable cost per unit.
Break-even point in units and revenue
Use this calculator to estimate how many units you need to sell before sales revenue covers fixed costs and variable costs. It works best for one product, one service, or an average unit.
- Fixed costs are monthly costs that do not directly change with unit volume.
- Price per unit is the selling price for one item or service.
- Variable cost per unit is the cost that occurs each time one unit is sold.
- Contribution margin is price minus variable cost per unit.
Break-even formula
If you cannot sell a fractional unit, round the break-even units up to the next whole unit to get the practical sales minimum.
Limits of a simple break-even model
- It does not forecast demand, seasonality, or capacity.
- It does not model multiple products with different margins unless you use an average unit.
- Step costs, loans, taxes, discounts, and target profit need separate planning.
- If price is lower than variable cost, selling more units increases the loss.
Frequently Asked Questions
Sources and References
- Break-even point calculatorU.S. Small Business Administration
- Break-even CalculatorCalculator.net
- Break Even CalculatorShopify
- Break-even pointWikipedia
Calculations are based on the listed reference sources. Links open in a new tab.
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