Break-even Calculator
Calculate break-even units and revenue from price, variable cost, and fixed costs. See contribution margin and optional margin of safety.
Use the Break-even Calculator
Enter price, variable cost, and fixed costs. Add target profit or expected sales for extra insights.
Pricing & costs
Selling price, variable cost per unit, and fixed costs.
Results
Break-even units
500
Break-even revenue
$25,000
Contribution margin per unit
$20
Contribution margin ratio
40%
What this metric means
Break-even shows the volume at which you cover all costs. It’s a core planning tool for pricing, capacity, and understanding how much you need to sell before making a profit.
How to improve the metric
Lower break-even by cutting fixed costs, raising price, or reducing variable cost per unit. Improving contribution margin (price minus variable cost) means you need fewer units to break even.
FAQs
What is break-even?▾
Break-even is the sales volume (units or revenue) at which total revenue equals total costs—no profit, no loss. Above that point you make money; below it you lose.
What is contribution margin?▾
Contribution margin per unit is selling price minus variable cost. It’s the amount each sale contributes toward covering fixed costs and then profit. The contribution margin ratio is that amount as a percentage of price.
How do I use target profit?▾
Enter a target profit to see how many units (or how much revenue) you need to hit that profit. The formula is (Fixed costs + Target profit) ÷ Contribution margin per unit.
What is margin of safety?▾
Margin of safety is how much your expected sales can fall before you drop below break-even. Enter expected sales volume to see it as a percentage—higher is safer.
What if I have multiple products?▾
For a simple mix, use a weighted average price and variable cost, or run the calculator for one product at a time. For complex mixes, consider a dedicated break-even model with sales mix.
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