Business tools
Break-Even Calculator
Calculate mathematical break-even units, a practical whole-unit target, and break-even revenue from fixed costs, selling price, and variable cost per unit.
Use the same currency and time period for all amounts. The dollar sign is a generic display symbol; this calculator does not assume or convert currencies.
The calculation runs locally in your browser. No input values are saved or sent to a server.
Enter your cost and price assumptions.
Worked example
With fixed costs of $10,000, a selling price of $100, and a variable cost of $60 per unit, contribution margin is $40 per unit. Break-even is 250 units and $25,000 in revenue; contribution margin is 40%. The dollar sign is illustrative, not a selected currency.
About this calculator
What break-even analysis measures
Break-even analysis estimates the sales quantity where total revenue equals fixed and variable costs. It can help you compare pricing or cost scenarios and set an operating target.
Fixed costs and contribution margin
Fixed costs stay broadly stable across the period being analyzed. Variable costs change with each unit. The selling price minus variable cost is the contribution margin per unit—the amount available to cover fixed costs.
- Contribution margin per unit = selling price − variable cost per unit.
- Contribution margin percentage = contribution margin per unit ÷ selling price.
How to interpret the estimate
Mathematical break-even units can include a fraction; the practical target rounds that quantity up to a whole unit. Break-even revenue is the mathematical quantity multiplied by the selling price, not the rounded-up target. The estimate assumes costs and selling price stay unchanged and does not account for taxes, changing sales mix, capacity limits, or other business factors.
Frequently asked questions
What is a break-even point?
It is the sales quantity at which total revenue equals fixed and variable costs, leaving no profit or loss under the assumptions entered.
What are fixed costs?
Fixed costs are costs that stay broadly stable over the period being analyzed, even as the number of units sold changes.
What are variable costs?
Variable costs change with the number of units sold, such as per-unit materials or production costs.
What is contribution margin?
Contribution margin per unit is selling price minus variable cost per unit. It is the amount from each sale available to cover fixed costs.
What if variable cost is higher than selling price?
Each sale loses money before fixed costs are covered. There is no finite break-even point under those assumptions.
Should I round break-even units up?
The mathematical result stays unrounded. For a practical sales target, round up to the next whole unit when the result includes a fraction.
Does this calculator include taxes?
No. Enter amounts on a consistent basis; the calculator does not add taxes or other fees.
Is break-even analysis the same as profit forecasting?
No. It estimates when revenue covers the costs entered. It does not forecast demand, sales mix, changing costs, or future profit.
For general planning and educational use. Actual results may differ because of taxes, changing costs or prices, sales mix, capacity, and other business factors.