Break-Even Calculator
Find the sales volume and revenue needed to cover all your costs.
What the Break-Even Calculator does
Break-even is where total revenue exactly covers total costs. Each unit contributes its price minus variable cost toward the fixed costs; once those are covered, every further unit is pure profit.
Formula
Contribution margin = Price − Variable costBreak-even units = Fixed costs ÷ Contribution marginUnits for target profit = (Fixed costs + Target profit) ÷ Contribution margin
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Total fixed costs | selected currency | Yes | Rent, salaries, insurance — costs that do not change with volume. Accepts 0 or more. |
| Selling price per unit | selected currency | Yes | Accepts 0 or more. |
| Variable cost per unit | selected currency | Yes | Materials, shipping, per-unit labour. Accepts 0 or more. |
| Target profit | selected currency | Optional | Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Total fixed costs, Selling price per unit and Variable cost per unit.
- Optionally add Target profit.
- Select Calculate.
Worked example
$50,000 fixed costs, $80 selling price, $30 variable cost.
- Fixed
- 50000
- Price
- 80
- Variable
- 30
Contribution $50 per unit, break-even at 1,000 units or $80,000 revenue.
Frequently asked questions
What counts as a fixed cost?
Anything that does not vary with output: rent, salaried staff, insurance, software subscriptions. Materials and per-unit shipping are variable.
How do I lower my break-even point?
Raise the price, cut variable cost per unit, or reduce fixed overheads. Cutting fixed costs lowers the break-even point proportionally.