Break-Even Point Calculator
See exactly how many units you need to sell before you start making money. Enter your fixed costs, the price you charge, and the variable cost of each unit.
Revenue vs total cost
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Get itHow break-even works
Each sale contributes price minus variable cost toward your fixed costs. Divide fixed costs by that contribution margin and you get the number of units that zeroes out the books. Every unit after that is profit.
How it’s calculated
Break-even units = fixed costs ÷ (price − variable cost per unit); break-even revenue = units × price.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Worked example
With $10,000 fixed costs, a $50 price and $30 variable cost, you break even at 500 units ($25,000 revenue).
Common mistakes
- Putting variable costs in the fixed-cost box (or vice versa).
- Assuming break-even means profit — it only means no loss.
Where it is used
- Deciding whether a new product can cover its launch costs.
- Setting a sales target before a price change.
Frequently asked questions
What counts as a fixed cost?
Costs that don't change with volume: rent, salaries, software, insurance. Variable costs scale per unit: materials, shipping, payment fees.
What if I sell several products?
Use a blended average price and variable cost, or run the calculator once per product line.
Does break-even guarantee profit?
No — it's the point where you stop losing money. Profit comes from sales beyond break-even.
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