Break-Even Point Calculator
Calculate how many units you need to sell to cover your fixed costs.
What is the Break-Even Point Calculator?
Your break-even point is the number of units you need to sell for total revenue to exactly cover total costs — the point where you stop losing money and start making it, with zero profit or loss at that exact point.
The formula
Contribution Margin = Price − Variable Cost per Unit. Break-Even Units = Fixed Costs ÷ Contribution Margin. Break-Even Revenue = Break-Even Units × Price.
How to use it
- Enter your total fixed costs (rent, salaries, insurance — costs that don't change with sales volume).
- Enter your selling price per unit and your variable cost per unit (materials, direct labor — costs that scale with each sale).
- See how many units (and how much revenue) you need to break even.
This is a useful planning benchmark for a new product or business, but it assumes price and variable cost stay constant regardless of volume — in reality, costs can shift with scale (bulk discounts, overtime pay), which this simplified model doesn't capture.
Want the "why" behind this tool? Read The One Number That Tells a New Business When It Stops Losing Money.