Break-Even Point Calculator

Find exactly how much you must sell to cover your costs.

The break-even point is the level of sales at which total revenue exactly covers total costs — the moment a business stops losing money and starts making it. Knowing it tells you whether a price, a product or a whole venture is viable before you commit.

Enter your fixed costs, selling price and variable cost per unit below to find the number of units (and the revenue) you need to break even, along with the contribution margin earned on every sale.

Enter your numbers

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Results

Break-even units
500
Break-even revenue
$25,000
Contribution margin / unit
$20.00
Contribution margin %
40.0%
Formula: Break-even units = Fixed Costs ÷ (Price − Variable Cost)
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Frequently asked questions

What is contribution margin?

Contribution margin is the price of a unit minus its variable cost — the amount each sale 'contributes' toward covering fixed costs and, after break-even, toward profit.

What counts as a fixed vs variable cost?

Fixed costs stay the same regardless of sales volume (rent, salaries, software). Variable costs rise with each unit sold (materials, shipping, transaction fees).

How can I lower my break-even point?

Raise prices, reduce variable cost per unit, or cut fixed overheads. Even small changes to contribution margin move the break-even point significantly.