Break-even Calculator
Free online break-even calculator. Find how many units to sell to cover costs. Enter fixed costs, variable costs and price to get your break-even point.
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Fixed Costs (Monthly)
Total Fixed Costs
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$
Cost to produce/deliver one unit
$
Price customers pay per unit
Break-even Units
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Break-even Revenue
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Contribution Margin
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Margin %
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Revenue vs Cost Analysis
Revenue
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Total Cost
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Fixed Cost
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Profit/Loss at Different Volumes
What is Break-even?
The break-even point is the number of units you need to sell to cover all your costs (both fixed and variable) with zero profit or loss. It's a critical metric for business planning and pricing strategy.
Key Concepts
- Fixed Costs: Costs that don't change regardless of production volume (rent, salaries, insurance).
- Variable Costs: Costs that increase with each unit produced (materials, shipping, labor per unit).
- Contribution Margin: The profit available after covering variable costs (Price - Variable Cost).
- Break-even Units: Fixed Costs ÷ Contribution Margin per unit.
How to Use Break-even Analysis
- Determine minimum sales needed to stay in business
- Set pricing strategy to achieve profitability targets
- Evaluate impact of cost reductions or efficiency improvements
- Understand sensitivity of profit to volume changes
Example Interpretation
If your break-even is 100 units at $50 each = $5,000 revenue, then selling 150 units generates $2,500 profit. This helps you understand risk and plan production accordingly.