Break-Even Calculator
Calculate your business break-even point. Find how many units you need to sell to cover costs with our free break-even analysis calculator.
Cost Information
$
Rent, salaries, insurance, etc. (monthly)
$
Materials, production, shipping per unit
Pricing
$
Break-Even Analysis
Break-Even Point (Units)
334 units
Break-Even Revenue
$8,333.33
Contribution Margin
$15.00
Contribution Margin Ratio
60.0%
Profit Analysis
$
Units Needed for Target
467 units
Revenue Needed for Target
$11,666.67
What-If Scenarios
units
Projected Revenue
$12,500.00
Total Costs
$10,000.00
Projected Profit/Loss
$2,500.00
Profit Margin
20.0%
Break-Even Chart
$18,750.00$0.00
0750 units
Revenue
Total Costs
Break-Even Point
Break-Even Tips
Understanding your break-even point helps you set pricing, manage costs, and make informed business decisions.
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Last updated: January 2026
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Frequently Asked Questions
What is the break-even point?
The break-even point is when total revenue equals total costs—you're neither making nor losing money. It tells you how many units you must sell to cover all fixed and variable costs.
How do I calculate the break-even point?
Break-even units = Fixed Costs ÷ (Selling Price − Variable Cost). If fixed costs are $10,000, price is $50, and variable cost is $30, break-even = $10,000 ÷ ($50 − $30) = 500 units.
What is contribution margin?
Contribution margin is selling price minus variable cost per unit. It's the amount each sale contributes toward covering fixed costs. Higher contribution margin means faster path to profitability.
What are fixed costs vs variable costs?
Fixed costs stay constant regardless of sales (rent, salaries, insurance). Variable costs change with production volume (materials, shipping, commissions). Understanding both is essential for pricing.
How can I lower my break-even point?
Reduce fixed costs (negotiate rent, cut overhead), lower variable costs (better supplier deals), or increase prices. A 10% price increase often has more impact than 10% cost reduction.