Break-Even Calculator

Calculate how many units you need to sell before your business starts making profit. Enter your fixed costs, selling price, and variable cost to get instant break-even results.

Calculate Break-Even Point

Add your business costs below. This tool will estimate your break-even units, break-even revenue, contribution margin, and profit after target sales.

Fixed Costs

Selling Price Per Unit

Variable Cost Per Unit

Expected Sales Units

Formula: Break-Even Units = Fixed Costs ÷ Contribution Margin Per Unit

Results

Your break-even summary will appear here after calculation.

Break-Even Units 0

Break-Even Revenue $0

Contribution Margin $0

Expected Profit $0

Safety Margin 0%

Enter your values and click calculate to see your business break-even point.

Why Use This Break-Even Calculator?

A break-even calculation helps business owners understand sales targets, pricing decisions, cost control, and profit planning before making big moves.

Set Clear Sales Targets

Find out how many units you need to sell before your revenue covers all business costs.

Improve Pricing Decisions

Compare your selling price with your variable cost to see if your pricing is profitable.

Plan Profit With Confidence

Estimate expected profit based on your sales volume and cost structure.

What Is a Break-Even Calculator?

A Break-Even Calculator is a business planning tool that helps you find the point where your total revenue becomes equal to your total costs. At this point, your business is not making a profit, but it is also not losing money.

This calculator is useful for startups, online stores, service businesses, manufacturers, freelancers, product sellers, and small business owners who want to understand whether their pricing and cost structure can support profitable growth.

Break-Even Formula

Break-Even Units = Fixed Costs ÷ Selling Price Per Unit - Variable Cost Per Unit

The difference between your selling price and variable cost is called the contribution margin. A higher contribution margin means you need fewer sales to break even.

Example

Suppose your fixed costs are $5,000, your selling price is $50, and your variable cost per unit is $20. Your contribution margin is $30. That means:

$5,000 ÷ $30 = 166.67 units

In this case, you need to sell about 167 units to break even.

How It Works

1. Enter Fixed Costs

Fixed costs are expenses that usually stay the same, such as rent, salaries, insurance, software subscriptions, equipment, and monthly business bills.

2. Add Selling Price Per Unit

This is the amount you charge customers for one product, item, package, or service unit.

3. Add Variable Cost Per Unit

Variable costs change with each sale. These may include raw materials, packaging, shipping, production cost, transaction fees, and direct labor.

4. Check Your Break-Even Point

The calculator shows how many units you must sell and how much revenue you need to cover your costs.

Frequently Asked Questions

Break-even means your total revenue equals your total costs. At this point, your business has no profit and no loss.

It helps you understand minimum sales targets, pricing strength, cost pressure, and whether your business model can become profitable.

Fixed costs are expenses that do not change much with sales volume, such as rent, salaries, insurance, and software subscriptions.

Variable costs increase or decrease with each sale. Examples include product materials, packaging, shipping, transaction fees, and production cost.

You can lower your break-even point by reducing fixed costs, lowering variable costs, increasing your selling price, or improving operational efficiency.