BREAK EVEN CALCULATOR

Break-Even Calculator

Estimate how many units cover fixed costs from selling price and variable cost, including break-even revenue and contribution margin.

What break-even measures

Break-even is the sales volume where contribution from each unit covers the period’s fixed costs. Contribution is price minus variable cost. The page assumes one product and constant prices and costs.

Unit contribution = price − variable cost
Break-even units = fixed costs ÷ unit contribution
Contribution margin = unit contribution ÷ price
Break-even revenue = whole units × price

Example

$10,000 of fixed costs, a $50 price, and a $30 variable cost leave $20 of contribution. Five hundred units cover the fixed costs and produce $25,000 of revenue.

Why the unit count is rounded up

Most products cannot be sold as a fraction. If the exact result is 500.2, 500 units still leave a gap, so the displayed count is 501. A divisible service can be read from the exact figure.

Frequently asked questions

What if price is at or below variable cost?

There is no break-even volume. Each extra unit increases the loss.

What if fixed costs are zero?

The exact unit count is zero whenever price is above variable cost.

Can I model several products?

This version uses one product or a fixed mix. A changing mix needs a weighted contribution.

Does this include income tax?

No. It is an operating planning model, not an accounting or tax return.

More calculators

Gross Margin Calculator →ROI Calculator →Percentage Calculator →

Calculations run in your browser. Values are not uploaded or stored.