FINANCE TOOL

Break-Even Calculator

Find the sales volume and revenue needed to cover your costs. Enter your fixed costs, selling price and variable cost below.

Calculate your break-even point

Currency

Fixed Costs Total costs that do not change with sales volumeSelling Price per Unit Amount charged for each unit soldVariable Cost per Unit Cost that changes with each unit produced or sold

Contribution / Unit$20.00

Contribution Margin40.00%

Break-Even Units500

Break-Even Revenue$25,000.00

You need to sell about 500 units to cover $10,000.00 in fixed costs.

How the break-even calculator works

The break-even point is the sales level where total revenue equals total costs. Contribution margin shows how much each sale contributes toward fixed costs after variable cost is covered.

Contribution per UnitSelling Price − Variable Cost

Break-Even UnitsFixed Costs ÷ Contribution per Unit

Break-Even RevenueBreak-Even Units × Selling Price

Example: With 10,000 in fixed costs, a 50 selling price and 30 variable cost per unit, contribution is 20 per unit and the break-even point is 500 units or 25,000 in revenue.

Use this free break-even calculator to estimate the sales volume needed to cover your fixed and variable costs.

Frequently asked questions

What are fixed costs?

Fixed costs generally do not change directly with the number of units sold, such as rent, base salaries, insurance or software subscriptions.

What is variable cost per unit?

Variable cost is the cost associated with producing or delivering one additional unit, such as materials, packaging or per-unit transaction costs.

Why can the calculator not find a break-even point?

If the selling price is equal to or lower than the variable cost per unit, each sale contributes nothing or loses money before fixed costs, so there is no positive break-even volume with those inputs.