FINANCIAL · BREAK-EVEN
Break-Even Calculator
Calculate your break-even point in units and revenue from fixed costs, price per unit, and variable cost per unit.
Break-even point
250 units
$2,500.00 revenue
Fixed costs$1,000.00
Price per unit$10.00
Variable cost / unit$6.00
Contribution margin$4.00
About This Calculator
Find the number of units you need to sell to cover all your costs. Enter your total fixed costs, the selling price per unit, and the variable cost per unit to calculate your break-even point and break-even revenue.
How It Works
Enter your fixed costs (rent, salaries, overhead), your selling price per unit, and your variable cost per unit (materials, direct labour, etc.). The calculator computes the contribution margin per unit and divides your fixed costs by that margin to find the break-even volume.
The Formula
BE Units = Fixed Cost / (Price − Variable Cost)
- BE Units
- Number of units required to break even
- Fixed Cost
- Total fixed costs (do not vary with volume)
- Price
- Selling price per unit
- Variable Cost
- Variable cost per unit (varies with volume)
Frequently Asked Questions
- What are fixed costs?
- Fixed costs stay constant regardless of how many units you produce or sell — rent, insurance, salaries, and equipment depreciation are common examples.
- What are variable costs?
- Variable costs change with production volume — raw materials, direct labour per unit, packaging, and sales commissions are typical examples.
- What if my price equals my variable cost?
- The contribution margin is zero, meaning no unit sold contributes to covering fixed costs. You can never break even in this scenario — you need to raise your price or reduce variable costs.