Break-Even Calculator
This break even point calculator shows the units and revenue you need to cover costs, with a chart of where you break even.
Formula & worked example
Formula: Break-even units = fixed costs ÷ (price − variable cost per unit).
Example: Fixed 5,000, price 25, variable 10: 5,000 ÷ 15 = 333.3, so 334 units and 8,350 in revenue.
Method & source: Cost-volume-profit analysis: fixed costs ÷ contribution margin per unit. See how we test our calculators.
Next step: try profit margin with fees or freelance rate.
What Is a Break-Even Calculator?
A break-even calculator finds the point where your revenue exactly equals your costs. Sell fewer units than the break-even point and you lose money; sell more and every extra unit is profit.
This break even point calculator uses your fixed costs, the variable cost of each unit and your selling price, and draws a chart so you can see the crossing point for yourself.
How Our Break-Even Calculator Works
Enter your fixed costs, the variable cost per unit and the price you charge per unit. Optionally add a profit target.
- Contribution margin: Selling price minus variable cost – what each unit contributes toward fixed costs.
- Break-even units: Fixed costs ÷ contribution margin, rounded up to whole units.
- Break-even revenue: The sales value you need to reach that many units.
- Profit target: Units required to earn a specific profit on top of break-even.
- Visual chart: Revenue and total cost lines with the break-even point where they meet.
If the selling price is not higher than the variable cost, the calculator flags that break-even is impossible at that price.
Why Break-Even Analysis Matters
Before launching a product, opening a shop or changing a price, you need to know how much you must sell to stay afloat.
- Judge whether a business idea is realistic.
- Set sales targets based on real costs.
- Test how a price change moves the break-even point.
- Understand the impact of fixed costs such as rent and subscriptions.
- Communicate the numbers clearly to partners or lenders.
A break-even chart turns abstract costs into a target you can plan around. Run the break even point calculator again after any price change to see how the target moves.
Worked walkthrough: a coffee cart
A coffee cart has fixed costs of 2,400 a month (pitch fee, insurance, equipment payments). Each coffee sells for 4.50 and costs 1.30 in ingredients and cups, so each cup contributes 3.20 towards the fixed costs. Break-even is 2,400 ÷ 3.20 = 750 cups a month, or 3,375 in sales. Sell 900 cups and you are 150 cups past the line: 150 × 3.20 = 480 profit. Entering a profit goal of 1,000 raises the target to (2,400 + 1,000) ÷ 3.20 ≈ 1,063 cups. The chart shows the revenue line crossing the cost line at 750.
Practical tips for break-even calculations
- Be strict about which costs are fixed. A cost that changes with sales, such as card fees or packaging, belongs in the variable cost per unit.
- Include your own pay in the fixed costs if you want the break-even to cover a wage, not just the bills.
- Test a price change: a small rise in price often lowers break-even units far more than an equal cut in costs.
- Break-even is a monthly or yearly figure depending on the fixed costs you enter. Keep the period consistent with your sales forecast.
- If the tool says the price is not above the variable cost, no volume of sales will ever cover fixed costs – change the price or the cost first.
Frequently Asked Questions (FAQs)
Divide total fixed costs by the contribution margin per unit (price minus variable cost). With 5,000 fixed costs, a 25 price and 10 variable cost, the break-even point is 5,000 ÷ 15 ≈ 334 units.
Costs that stay the same regardless of how much you sell, such as rent, salaries, insurance, software subscriptions and equipment.
Costs that rise with each unit sold, such as materials, packaging, shipping and payment fees.
Enter a target profit. The calculator adds it to fixed costs and shows the units needed to reach both break-even and that profit.
The revenue line rises faster than the cost line. Where they cross is the break-even point. To the right of it the gap between the lines is your profit.
Estimates only – not financial advice. Results are estimates based only on the figures you enter and simplified assumptions (constant prices, costs and rates; no unexpected fees). They are not financial, tax or accounting advice. Check important decisions with a qualified professional. See our full disclaimer.