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Break-Even Calculator
Use this break-even calculator to estimate how many units you need to sell to cover fixed costs.
Break-Even Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
If fixed costs are $18,000, price per unit is $75, and variable cost per unit is $30, contribution margin is $45, break-even units are 400, and break-even revenue is $30,000.
How this calculation works
This calculator applies the stated contribution margin = price per unit - variable cost per unit; break-even units = fixed costs / contribution margin; break-even revenue = break-even units * price per unit formula to the values entered above.
How to interpret the result
Calculate break-even units and revenue. Compare the result with your own historical performance, operating assumptions, and downside case before acting.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Formula and example
If fixed costs are $18,000, price per unit is $75, and variable cost per unit is $30, contribution margin is $45, break-even units are 400, and break-even revenue is $30,000.
Common use cases
- Estimate viability for a new product or service.
- Evaluate how price changes affect the sales volume required.
- Prepare simple planning scenarios for a budget review.
Break-Even Calculator FAQ
What is contribution margin?
Contribution margin is the amount each unit contributes toward fixed costs after covering variable costs.
What if price equals variable cost?
Then contribution margin is zero and break-even cannot be reached, so the calculator flags the input.
Can variable cost be higher than price?
Yes, but that means each sale loses money and break-even units would not be meaningful.
Should break-even units be rounded?
In practice, yes. Most businesses round up to the next whole unit because partial units are not sellable.