Break-Even Calculator
Calculate the break-even point in units and revenue, the contribution margin, units needed for a target profit and your margin of safety — with a chart.
Enter fixed costs, price and variable cost to find your break-even point.
How the Break-Even Calculator helps
Before launching a product, hiring or signing a lease, you need to know how much you must sell just to stand still. This calculator turns three numbers into a break-even point in units and revenue, shows how much profit each extra sale contributes, and tells you how far your expected volume is above or below the line.
Formulas
Contribution margin per unit = price − variable cost. Break-even units = fixed costs ÷ contribution margin, rounded up to whole units. Break-even revenue = break-even units × price. Units for a target profit = (fixed costs + target profit) ÷ contribution margin. Margin of safety = (expected units − break-even units) ÷ expected units.
Example
With fixed costs of $12,000 a month, a price of $49 and variable costs of $21, each unit contributes $28. You break even at 428.6 units, so 429 units or about $21,000 in revenue. Selling 600 units gives a profit of $4,800 and a 28.6% margin of safety.
Frequently asked questions
What counts as a fixed cost?
Costs that stay the same within the period regardless of how much you sell, such as rent, salaries, subscriptions and insurance. Use the same period (month, quarter or year) for fixed costs and expected sales.
Why is the break-even point rounded up?
You cannot sell a fraction of a unit, so the calculator shows the next whole unit as the headline and the exact figure below it.
What if my price is lower than my variable cost?
Then every sale increases the loss and there is no break-even point. Raise the price or lower the variable cost per unit.
The model assumes a constant price and variable cost per unit and a single product. For several products, use a weighted average contribution margin.